A list of 17 banks is preparing to begin testing live transactions on Swift’s blockchain-based ledger, a step toward 24-hour cross-border payments using tokenized deposits.
Swift said in an announcement Thursday that the ledger is ready for initial use by banks on six continents. It aims to allow banks to move funds for customers overnight and on weekends, before final settlement through existing payment systems.
Participating banks include UBS, BNP Paribas, BNY, Citi, HSBC and Wells Fargo.
Swift, the bank-owned messaging network used by more than 11,500 financial institutions, announced the development of this shared accounting platform in October. It then said it would allow banks to settle transactions involving stablecoins and tokenized assets on multiple blockchains, working alongside current payment pathways, without replacing them.
Swift said the system provides banks with a shared layer for tokenized deposits issued on their own ledgers. Tokenized deposits are digital versions of commercial bank money.
“With our new accounting capability, we are extending the trust and stability of established finance to the frontiers of digital money,” said Thierry Chilosi, chief commercial officer at Swift.
