Swift has readied its blockchain-based shared ledger for pilot use among 17 banks, including HSBC, UBS, Citi and Wells Fargo. The banks will move customer funds across borders around the clock, while settlement runs through existing systems.
Swift, the messaging network connecting more than 11,500 financial institutions in over 200 countries, is now moving from lab testing to real pilot use of blockchain technology. The move comes as stablecoin issuers already offer cross-border transfers that can settle outside banks' normal operating hours, illustrating how established financial players are building their own regulated alternatives to that competition.
The system gives participating banks a shared layer for tokenized deposits — digital versions of ordinary bank deposits that remain on banks' balance sheets and under existing supervisory regimes. That sets them apart from private stablecoins, which sit off banks' balance sheets. The aim is to let banks move customer funds overnight and on weekends, before final settlement runs through today's payment systems. Swift stresses that the shared ledger doesn't replace existing infrastructure, but adds a more flexible digital layer on top of it.
"With our new ledger capability, we're extending the trust and stability of established finance into the frontiers of digital money"
Thierry Chilosi, Chief Business Officer at Swift
Banks involved include HSBC, UBS, BNP Paribas, BNY, Citi, Wells Fargo, ANZ, DBS and Standard Chartered, with operations spread across six continents. The pilot builds on Swift's partnership with blockchain firm Consensys, announced last October to develop a shared ledger for cross-border payments.
The push comes as banks, payment companies and crypto firms all test faster ways of moving money across borders. Where stablecoins have shown that international payments can move quickly with few visible intermediaries, banks want to offer an alternative that preserves regulatory control, credit assessment and risk management. The IMF has identified tokenized deposits, stablecoins and tokenized central bank reserves as three competing models for digital settlement — without determining which will dominate. Meanwhile, US banks are working on their own tokenized deposit networks, while players such as NYSE and Securitize are building infrastructure for tokenized stocks and funds.
Swift says 75% of payments on its network today reach the beneficiary bank within ten minutes, often within seconds. The shared ledger is meant to add round-the-clock availability for regulated digital money without weakening the link to existing settlement systems. The pilot remains a controlled test phase for now, not a full rollout — but if it succeeds, tokenized deposits could become one of the key bridges between traditional banking and digital assets.
Sources: CoinDesk, Cointribune
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