SWIFT has launched a pilot for its blockchain-based shared ledger, designed to facilitate cross-border payments using tokenized deposits and enable 24/7 settlement. The initiative involves 17 major banks from six continents and is built on Hyperledger Besu, with the pilot ready for initial use after a nine-month implementation period.
How the Ledger Works and Integrates
The core of the pilot involves using tokenized deposits, which are backed one-to-one by commercial bank deposits. This approach aims to leverage the benefits of blockchain technology while maintaining the regulated status of traditional bank accounts. The shared ledger operates above existing payment rails, coordinating funding commitments between participating banks and providing a real-time view of payment status. Crucially, final settlement continues through existing RTGS systems and SWIFT’s established messaging network, rather than being replaced.
Enabling 24/7 Settlement
According to SWIFT, the primary objective of this new ledger is to remove the constraint of overlapping business hours between sender and receiver, thereby enabling 24/7 settlement availability. This includes facilitating transactions during nights, weekends, and across different time zones, which current infrastructure struggles to support efficiently.
Upgrading Existing Infrastructure
SWIFT’s strategy emphasizes upgrading existing infrastructure rather than replacing it. The platform is designed to allow tokenized value to move across borders with speed, while maintaining the resilience, security, and compliance expected by global financial institutions. Thierry Chilosi, SWIFT’s Chief Business Officer, stated that the platform enables tokenized value to move across borders with the speed modern commerce demands while maintaining the resilience, security, and compliance expected by global financial institutions.
Maintaining Compliance and Encouraging Adoption
The pilot maintains existing compliance, credit, risk, and control standards, a move intended to reduce barriers to institutional adoption. By keeping established safeguards in place, SWIFT is pitching blockchain as an enhancement to its current infrastructure. This approach is seen as critical, as regulators and major banks have shown reluctance towards tokenized payment systems that might weaken oversight.
Global Participation and Industry Context
The 17 participating banks include HSBC, Citi, UBS, BNP Paribas, DBS, ANZ, Standard Chartered, BNY Mellon, First Abu Dhabi Bank (FAB), FirstRand, Itaú Unibanco, Lloyds Banking Group, Mashreq, MUFG, OCBC, UOB, and Wells Fargo. Their involvement from six continents provides the project with a broad international footprint from its outset, potentially serving as an early test of blockchain-based settlement at a global banking scale.
SWIFT is not alone in exploring tokenized finance. A separate consortium, including JPMorgan Chase, Bank of America, Barclays, and BNY Mellon, is developing a US-focused tokenized deposit network targeting a first-half 2027 launch. Additionally, Intercontinental Exchange has outlined a 24/7 settlement venue for tokenized securities, and NYSE partnered with Securitize to build blockchain infrastructure for tokenized stocks and ETFs.
Future Outlook and Next Steps
SWIFT’s existing network connects over 11,500 financial institutions across more than 200 countries, offering the shared ledger a potential user base that few blockchain payment networks can match. If the pilot succeeds across these 17 major banks and multiple currency corridors, it could pave the way for easier adoption by other institutions.
Future upgrades are anticipated to support foreign exchange payment versus payment, programmable corporate payments, and cash movements tied to securities transactions. However, the current rollout is an early milestone, and the next test will be whether this global network can translate initial interest into meaningful transaction volume. The success of the pilot hinges on its ability to demonstrate tangible improvements in cross-border payment efficiency while adhering to established financial regulations and controls.
Why This Matters
The materials describe a narrow update: SWIFT has launched a pilot for its blockchain-based shared ledger, built on Hyperledger Besu, involving 17 major banks. Whether the global network can translate interest into meaningful transaction volume.
