Project Scope and Consortium
SWIFT has announced a collaboration with more than 30 leading global financial institutions to develop a blockchain-based ledger that will operate 24/7 for cross-border payments. The initiative is built on a prototype developed by ConsenSys, which aims to integrate blockchain technology into SWIFT’s established messaging infrastructure.
Real-Time Transaction Logging
The proposed ledger will function as a real-time, immutable log of interbank transactions, handling sequencing, validation, and rule enforcement through smart contracts. This approach seeks to combine SWIFT’s legacy network strengths with blockchain’s transparency and resilience, addressing demands for continuous settlement beyond standard banking hours.
Strategic Response to Digital Asset Trends
SWIFT has been researching blockchain and tokenization for several years amid suggestions that digital assets could disrupt traditional messaging networks. By adopting a distributed ledger, SWIFT aims to modernize its platform and preempt obsolescence driven by stablecoin and central bank digital currency adoption.
Technical Architecture
The ledger prototype leverages Ethereum-compatible smart contracts for transaction validation and sequencing. Each participant will run a node that contributes to consensus, ensuring data integrity across all member banks. Interoperability with existing SWIFT messaging formats will be maintained to facilitate seamless integration with current back-office systems.
Potential Impact on Settlement Efficiency
Continuous settlement could reduce liquidity pressures by eliminating batch processing delays, allowing banks to manage capital more dynamically. Real-time visibility of transactions may lower counterparty risk and offer audit-grade records for compliance purposes. If successful, this model could set a new industry standard for global payments.
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