SWIFT, Banks Roll Out Blockchain for Faster Global Payments

SWIFT and more than 30 international banks are collaborating on a blockchain-based digital ledger to make cross-border payments instant and compatible with emerging forms of digital money.

The financial messaging network said the project aims to modernize international banking by enabling real-time  24/7 transactions while reducing costs, as current processes can take days.

The initiative builds on pilot projects testing interoperability with stablecoins, tokenized bank deposits, and central bank digital currencies (CBDCs) under development in regions such as China and the European Union.

Headquartered in Belgium, SWIFT said its advantage lies in its existing network, which spans over 200 countries, connects more than 11,000 banks, and processes trillions of dollars in transactions daily.

The shared digital ledger under development is expected to record, sequence, and validate transactions, applying rules via smart contracts.

Eric Trump, son of US President Donald Trump and a cryptocurrency advocate, recently described SWIFT as “outdated.” He said adding blockchain capabilities could help the network stay relevant while maintaining the compliance and resilience traditional banks require.

Stablecoins are gaining traction, with Citi estimating that by 2030 up to US$4 trillion (MX$73 trillion) could be in circulation, supporting US$100 trillion in annual transactions. About 90% of central banks worldwide are exploring digital versions of their national currencies.

No timeline has been set for launch, but SWIFT said the system will initially focus on enabling real-time cross-border payments.