Brussels – The Society for Worldwide Interbank Financial Telecommunication (SWIFT), the backbone of the international banking system, has announced a landmark step in its modernization journey: the launch of a blockchain-based registry designed to enable real-time, 24/7 global payments. The move not only addresses longstanding inefficiencies in cross-border transactions but also sets the stage for the broader adoption of tokenized assets in the financial system.
A Global Collaboration
SWIFT revealed that more than 30 leading financial institutions from 16 countries are already participating in the project. Among them are some of the world’s largest banks, including Bank of America, Deutsche Bank, HSBC, JPMorgan, Citi, BNP Paribas, Santander, and Wells Fargo. Additional partners from Europe, Asia, the Middle East, and South America highlight the initiative’s truly global scope.
The first prototype of the blockchain registry is being developed in partnership with Consensys, a U.S.-based blockchain technology company. The system will function as a digital ledger, automatically recording, verifying, and organizing transactions using smart contracts. These programmable contracts can enforce rules and conditions without human intervention, ensuring greater transparency and efficiency.
Beyond Traditional Rails
At present, international payments are often delayed due to time zone differences, variations in standards, and outdated technical infrastructure. Even with SWIFT’s existing global network, transfers can take days to complete and involve multiple intermediaries.
The new blockchain ledger aims to eliminate these frictions by allowing banks to settle payments instantly and continuously, regardless of geography or market hours. This round-the-clock capability could prove transformative for global commerce, particularly for multinational corporations and institutions managing high-volume, time-sensitive transactions.
Tokenized Assets in Focus
A key feature of the new registry is its ability to support tokenized forms of value. SWIFT stressed that while it will provide the underlying infrastructure, it will not determine which assets circulate on the platform. That responsibility lies with commercial banks and regulators, ensuring flexibility and compliance with global standards.
This opens the door for a range of digital instruments, including:
- Central Bank Digital Currencies (CBDCs) – Government-backed digital money, currently being piloted in more than 100 countries.
- Stablecoins – Privately issued digital tokens pegged to traditional currencies, provided they are fully regulated.
- Other tokenized assets – From bonds to commodities, offering banks a bridge between traditional finance and emerging digital markets.
By enabling both fiat and digital currencies to coexist on the same rails, SWIFT is positioning itself as a critical connector between the old and new financial systems.
A Strategic Response
SWIFT’s decision comes at a time when competition in cross-border payments is heating up. Fintech firms such as Ripple, as well as JPMorgan’s Kinexys Digital Payments network, have been pushing blockchain as a faster and cheaper alternative to legacy banking infrastructure.
For SWIFT, which handles over 11,000 institutions across more than 200 countries, maintaining relevance in an era of decentralization is essential. By adopting blockchain, the cooperative is not only preserving its dominance but also signaling its intent to lead the next generation of financial infrastructure.
CEO’s Vision: Trust and Transparency
SWIFT CEO Javier Perez-Tasso framed the launch as part of a long-term strategy to future-proof the global financial system.
“We are creating the infrastructure stack of the future,” he said in a statement. “This will allow banks and their customers to benefit from instant, transparent, and secure payments, while ensuring that SWIFT maintains its role as the trusted hub of global finance.”
His comments underline SWIFT’s dual challenge: embracing innovation while retaining the confidence of regulators, banks, and customers worldwide.
Testing and Gradual Rollout
The blockchain registry is currently in its prototype phase, with pilot testing expected to begin in the coming months. Once validated, SWIFT plans to gradually integrate the system into the wider financial ecosystem.
Industry observers note that the rollout will likely follow a phased approach, focusing initially on high-volume corridors before expanding globally. The system’s compatibility with existing payment rails is expected to ease adoption, minimizing disruption for member banks.
Industry Impact and Challenges
If successful, SWIFT’s blockchain could significantly reshape the global payments landscape. Potential benefits include:
- Speed – Real-time settlements versus multi-day delays.
- Cost reduction – Lower reliance on intermediaries could cut fees.
- Transparency – Immutable records enhance auditability and compliance.
- Liquidity management – 24/7 availability allows treasurers to better optimize working capital.
However, challenges remain. Scaling the system to handle trillions of dollars daily will require significant technical and operational refinement. Interoperability with public blockchains and national payment systems is another hurdle, as is ensuring consistent regulatory treatment across jurisdictions.
Looking Ahead
SWIFT’s blockchain registry marks a pivotal moment in the evolution of international finance. By marrying its trusted global infrastructure with cutting-edge distributed ledger technology, the cooperative is laying the foundation for a faster, more transparent, and more inclusive financial system.
While questions of scalability and regulation remain, the project highlights a broader truth: blockchain is no longer confined to experimental pilots. It is moving into the very heart of traditional finance.
For banks, corporates, and regulators alike, SWIFT’s initiative could be the catalyst that finally makes instant cross-border payments a global reality.
