The international payment network Swift has announced the launch of a blockchain registry, which could be a key milestone in transforming cross-border payments in more than 200 countries worldwide. The new project brings together the efforts of over 30 leading banks, including Bank of America, JPMorgan, Deutsche Bank, HSBC, Santander, and BNP Paribas.
This is reported by Business • Media
Blockchain Registry for Financial Transactions
The initiative was presented during the Sibos conference in Frankfurt. The first phase will involve creating a conceptual prototype in collaboration with Consensys, enabling instant cross-border payments in a 24/7 mode. The new registry will function as a secure transaction log, where operations will be recorded, verified, and organized among financial institutions.
“We are already providing powerful and efficient payment ‘rails’ and are rapidly moving with the community towards building the infrastructure of the future. With the new registry, we are paving the way for the next level of payment experience, keeping Swift at the center of the industry’s digital transformation,” said Swift CEO Javier Pérez-Tasso.
A distinctive feature of the project is the support for only regulated tokenized assets, with the selection of specific tokens to be made by the banks and central banks themselves. The infrastructure will be compatible with both traditional and new digital networks, and will also allow the use of smart contracts.
Involvement of International Banks and Prospects
Financial giants such as Standard Chartered, Wells Fargo, ANZ, BBVA, and First Abu Dhabi Bank are involved in the Swift initiative. Market participants have highly appreciated the potential of the joint blockchain registry for industry development. In particular, Nigel Dobson from ANZ considers this step groundbreaking for enabling instant cross-border transactions, while representatives from Bank of America emphasize the importance of transparency and interoperability of the new digital tool for the efficiency of global payments.
Bruno Mellado, Global Head of Payments at BNP Paribas, highlighted the importance of forming infrastructure for multi-currency settlements in blockchain networks, which will unite different ecosystems through standards and reliable ‘rails’.
After completing the prototype development, Swift plans to conduct testing with coalition participants. In the future, the blockchain registry is expected to become the foundation for multi-currency instant settlements, ensuring compatibility with both private and public blockchain networks. The project is part of Swift’s strategy to modernize existing payment systems and create new digital infrastructures that will expand the capabilities of the financial industry.
Earlier, in March 2024, information emerged about Swift’s plans to launch a platform for connecting to central bank digital currencies.