SWIFT to Implement Blockchain-Based Ledger for Enhanced Payments
- SWIFT is collaborating with over 30 financial institutions to develop a blockchain-based ledger.
- The new system aims to facilitate cross-border payments on a 24/7 basis.
- This initiative is based on a prototype created by Ethereum developers Consensys.
- The ledger will function as a real-time transaction log, validating and sequencing transactions using smart contracts.
- SWIFT currently supports international transactions for over 11,000 financial institutions in more than 200 countries.
This development comes as SWIFT seeks to modernize its services amidst growing competition from digital assets, especially stablecoins. By integrating blockchain technology, SWIFT aims to enhance the efficiency of global financial communications and tokenized value transfers.
The new blockchain ledger represents a significant advancement for SWIFT’s infrastructure, potentially revolutionizing cross-border payments and ensuring real-time transaction capabilities across its network of over 11,000 institutions.
