Swift to Build Blockchain-Based Ledger for Real-Time Cross-Border Payments

Swifthas announced plans to develop a blockchain-based shared ledger for its technology infrastructure, marking a significant expansion of the global payments network's capabilities into digital asset settlement.

The Brussels-based organization is working with more than 30 financial institutions across 16 countries to design the ledger, initially focused on enabling real-time 24/7 cross-border payments. Swift will collaborate with Consensys on a conceptual prototype, with plans to complete phase one rapidly before defining subsequent development stages, according to a statement on Monday.

The ledger initiative builds on Swift's digital asset trials conducted over the past two years. The organization has been testing interoperability between distributed ledger technology and existing fiat currency rails through various pilot programs with financial institutions.

The ledger will extend Swift's financial messaging role into digital environments, facilitating banks' movement of regulated tokenized value across digital ecosystems. The infrastructure will record, sequence and validate transactions while enforcing rules through smart contracts, built for interoperability with both existing and emerging networks.

"We provide powerful and effective rails today and are moving at a rapid pace with our community to create the infrastructure stack of the future," said Swift CEO Javier Pérez-Tasso, announcing the initiative at the Sibos conference in Frankfurt. "Through this initial ledger concept we are paving the way for financial institutions to take the payments experience to the next level."

The development represents Swift's evolution beyond its traditional messaging infrastructure, which currently connects over 11,000 financial institutions across 200+ countries and territories. Rather than prescribing which tokens will be exchanged, Swift is focusing on providing the underlying infrastructure while commercial and central banks determine token usage.

Major global banks participating in the design coalition include Bank of America, Citi, JP Morgan Chase, HSBC, Deutsche Bank, BNP Paribas, Santander, Standard Chartered, and Wells Fargo, alongside significant Asian representation from DBS, OCBC, UOB, MUFG, Mizuho, and Shinhan Bank.

Singapore's three major banks expressed support for the infrastructure development. Lim Soon Chong, group head of global transaction services at DBS Bank, highlighted the initiative's key characteristics: "Swift's initiative goes a step further – it is interoperable with traditional correspondent banking rails, has a high transaction capacity within a secure environment, and is accessible by Swift's global banking network. These characteristics are critical in supporting broad-based reach and adoption, and have the potential to form the backbone of a resilient and future-ready global financial infrastructure."

OCBC's Melvyn Low, head of global transaction banking, emphasized the efficiency gains: "By enabling real-time, 24/7 cross-border payments with higher efficiency, transparency and security, this initiative can open up more payment options for both retail and corporate clients across Asia."

UOB's So Lay Hua, head of group transaction banking, noted the regional implications: "Our participation in this coalition will shape the payments landscape for our clients across ASEAN and beyond. The shift to this new regulated digital infrastructure will facilitate global payments to support tokenised value, liquidity optimisation and faster settlement."

Alongside the ledger development, Swift announced it will roll out client solutions to orchestrate between different systems, supporting both private and public networks for efficient and synchronized transactions across various use cases. This capability aims to ensure interoperability between DLT and traditional payment infrastructure.

The dual-track approach reflects Swift's strategy to upgrade existing fiat rails while simultaneously preparing infrastructure for digital finance. Last week, Swift also announced new scheme rules over existing rails to ensure faster, more predictable cross-border payment experiences for consumers and small businesses.

The blockchain-based ledger will maintain the trust, resilience and compliance standards associated with Swift's existing infrastructure, which are considered critical to global financial system stability. The platform will be designed for regulatory compliance and institutional-grade security from inception.

Swift's neutral position as industry infrastructure provider positions it distinctly from commercial blockchain networks operated by individual banks or consortiums. The organization's global reach and existing relationships with central banks and regulators provide advantages in establishing widely adopted standards.

The initiative comes as traditional financial institutions increasingly explore tokenization of assets and digital settlement mechanisms. Central bank digital currencies, stablecoins, and tokenized securities have gained momentum, creating demand for interoperable infrastructure connecting these emerging digital asset classes with traditional finance.

Following successful prototype development and proof of concept, Swift said it will work with its global community on implementation timelines and rollout strategies. The organization has not specified a target launch date for production deployment.

The ledger's development could accelerate institutional adoption of tokenized assets by providing familiar, trusted infrastructure for digital settlement. Banks participating in the design phase will help ensure the platform meets institutional requirements for risk management, compliance, and operational integration.

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