Global traditional finance payments network SWIFT has announced it's integrating a blockchain-based ledger system into its infrastructure. The development comes as SWIFT collaborates with more than 30 major financial institutions to create a revolutionary payment solution that enables 24/7 cross-border transactions, building upon an Ethereum prototype developed by Consensys.
According to SWIFT's official statement, the new blockchain ledger will transform the organization's traditional financial communication capabilities into a comprehensive digital environment. This advancement will facilitate regulated tokenized value transfers across diverse digital ecosystems for banking institutions worldwide.
SWIFT, which currently serves as the backbone for international banking transactions across 11,000+ financial institutions in over 200 countries, has been actively exploring blockchain technology and tokenization solutions for several years. This strategic move addresses growing competition from digital assets and stablecoins that threatened to disrupt traditional payment systems.
The innovative ledger system will function as a real-time transaction registry between financial institutions, providing comprehensive recording, sequencing, and validation capabilities while implementing automated rules through smart contract technology.