JAKARTA – The traditional global payment system SWIFT has announced plans to integrate a blockchain-based ledger into its network.
As reported by coindesk.com on Monday (29 September), SWIFT stated that the digital ledger is designed to serve as a real-time transaction record between financial institutions.
In addition to recording transactions, the system will also sequence, validate, and enforce rules through smart contracts.
In its statement, SWIFT revealed that the project is being developed in collaboration with over 30 financial institutions, using a prototype created by Ethereum consortium Consensys.
This initiative is expected to enable uninterrupted cross-border payments, operating 24 hours a day, seven days a week.
“This ledger will expand SWIFT’s role as a financial messaging system into the digital ecosystem, facilitating the regulated movement of tokenised value between banks across various digital platforms,” SWIFT explained.
For context, SWIFT is a financial messaging system that underpins international banking transactions, used by more than 11,000 financial institutions in over 200 countries.
SWIFT is taking this step in response to the growing adoption of digital assets for cross-border payments, such as the implementation of stablecoins.
To prepare for this potential disruption, SWIFT has been experimenting with blockchain and tokenisation technologies over the past few years. (DK/KR/LM)
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