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SWIFT Partners with 30+ Banks to Advance Instant Cross-Border Settlements via DLT

SWIFT Partners with 30+ Banks to Advance Instant Cross-Border Settlements via DLT

SWIFT collaborates with Consensys to build a blockchain platform to enhance international payments, addressing the growing challenge posed by stablecoins and digital assets.

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Summary

SWIFT has announced plans to launch its own blockchain network in collaboration with Consensys. The shared ledger aims to improve cross-border payments and will support stablecoins and tokenized assets. Leading banks, including JP Morgan and Deutsche Bank, are already testing the system. SWIFT’s move comes in response to the rise of stablecoins, which could threaten its long-established position in global payments. The project emphasizes interoperability between private and public blockchains, ensuring banks can integrate with existing systems.

Terms & Concepts
  • Blockchain-based Shared Ledger: A type of distributed ledger technology (DLT) that uses blockchain to record and validate transactions, providing transparency, security, and faster processing for financial operations.
  • Stablecoin: A digital asset pegged to a stable asset, often a fiat currency, designed to reduce volatility and facilitate easier global transactions.
  • Interoperability: The ability of different blockchain systems and financial networks to seamlessly communicate and operate together, facilitating smoother cross-platform transactions.