- SWIFT plans to launch a shared ledger platform for settling stablecoin and tokenized asset transactions between banks across different blockchains.
- The new platform will shift SWIFT‘s position from a messaging provider to a central player in transferring value digitally.
- Over 30 financial institutions are already participating in the project, with potential for more to join as regulatory clarity improves.
- Experts say the platform could reduce technical barriers and standardize integration for banks entering the digital asset space.
- SWIFT‘s history with sanctions may impact its perception of neutrality in the global financial system.
SWIFT, a well-established global financial messaging network, is building a new platform to help banks settle transactions involving stablecoins and tokenized assets. The system will connect banks and allow transfers across multiple blockchains. SWIFT shared these plans this week, aiming to update its role in the era of blockchain-based finance.
For decades, SWIFT has served mainly as a network for communication between banks, not for moving actual money. The new platform will bring the network closer to the center of digital value transfer, making it possible for banks to handle transactions using digital assets directly.
Noelle Acheson, author of Crypto Is Macro Now, explained that the project could become a “switching” layer, connecting digital assets and stablecoins that are often left on separate systems. She also noted, “Is SWIFT necessary in a tokenized financial system? No, it’s not—but it does have connections with virtually all global banks.” Those relationships, she said, may give SWIFT an advantage as banks move toward blockchain technology.
More than 30 financial institutions have signed on to work with SWIFT on the new ledger platform. Barry O’Sullivan from OpenPayd pointed out that increased adoption of stablecoins is pushing banks to look for ways to keep up. “The industry is moving at a rapid pace, and stablecoins are being adopted globally at such a speed that traditional banks are having to take notice,” O’Sullivan said. David Duong of Coinbase stated the platform may help lower costs and make integration easier for banks.
According to Duong, SWIFT‘s shift toward distributed ledger technology has been developing since at least 2017. Partnerships with projects like ChainLink and asset platforms Clearstream and SETL, as well as tests with central bank digital currencies (CBDCs), have laid the groundwork for this transition.
Some industry participants raised concerns that SWIFT‘s role in enforcing financial sanctions, such as restricting access for certain banks under U.S. and E.U. regulations, could lead to distrust in certain markets. Still, SWIFT‘s move signals that traditional finance and blockchain technology are becoming increasingly interconnected.
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