Home›Crypto›Market Structure›Swift adds blockchain features as stablecoins challeng…

Swift adds blockchain features as stablecoins challenge its messaging role

Swift rolled out a new blockchain ledger in July and has completed an initial live cross-border tokenized transaction with HSBC and Standard Chartered.

Reported · Written up by our desk · Market Structure

Swift is expanding its blockchain capabilities amid growing competition from stablecoins and tokenized deposits that promise faster, cheaper, round-the-clock cross-border payments, CoinDesk reports.

The payments network, built over 53 years ago, operates as the messaging backbone for legacy banking systems, but executives and bankers argue its relevance could be tested if institutions build networks that settle transactions directly without Swift messaging.

CoinDesk reports that Swift is racing to stay competitive, including by officially rolling out a blockchain ledger in July that provides banks with a shared layer for tokenized deposits issued on their own ledgers, with the first live transaction occurring in August.

HSBC and Standard Chartered recently completed the first live cross-border transaction on Swift’s new ledger, while Citi’s Debo Sen said Swift’s network effect and bank connections could help it connect fragmented ledgers and blockchain networks as blockchain rails expand.

More like this

Sources