A roster of 17 banks are preparing to begin testing live transactions on Swift’s blockchain-based ledger, a step toward round-the-clock cross-border payments using tokenized deposits.
Swift said the ledger is ready for initial use by banks across six continents in an announcement on Thursday. Its aim is to allow banks to move funds for customers overnight and on weekends, before final settlement through existing payment systems.
The banks taking part 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 ledger platform in October. It then said it would allow banks to settle transactions involving stablecoins and tokenized assets across multiple blockchains, working alongside current payment rails, not replacing them.
Swift, said the system gives banks a shared layer for tokenized deposits issued on their own ledgers. Tokenized deposits are digital versions of commercial bank money.
“With our new ledger capability, we’re extending the trust and stability of established finance into the frontiers of digital money,” said Thierry Chilosi, Swift’s chief business officer.