The initiative seeks to modernize settlement for digital and traditional assets
BNY Mellon has partnered with global financial messaging network SWIFT to develop a blockchain-based ledger designed to enhance cross-border payments and support the settlement of tokenized assets.
The collaboration marks a significant step in the evolving relationship between traditional financial infrastructure and distributed ledger technology. Rather than replacing existing systems, the initiative will focus on building an interoperable layer designed to complement SWIFT’s established global messaging network.
At the center of the partnership is the creation of a distributed ledger capable of coordinating international payments more efficiently while facilitating the management and settlement of tokenized financial instruments.
These digital representations of traditional assets, including bonds, equities, and funds, have been widely touted as a way to streamline post-trade processes and reduce operational risk through near-instant clearing.
Cross-border payments have long been criticized for delays, fragmented reconciliation processes, and limited transparency, particularly when transactions pass through multiple intermediaries across different jurisdictions.
Isabel Schmidt, executive platform owner of BNY, said: “Swift’s work on a shared ledger represents an important step toward exploring how cross-border transactions can become faster, more transparent, and more resilient.”
By integrating blockchain architecture with traditional banking rails, SWIFT and BNY Mellon aim to address these inefficiencies, creating a synchronized record of transactions shared among participants.
The proposed ledger would support both fiat-based transactions and tokenized instruments, enabling institutions to manage conventional payments alongside emerging digital assets within a single framework.
This model could reduce reconciliation mismatches and operational overhead while improving settlement consistency across markets.
