Bank-to-bank payment network Swift is developing a shared digital ledger with 30 member banks to explore blockchain technology for real-time cross-border payments.
Swift will collaborate with Consensys on a prototype of the ledger, aiming to facilitate transactions using any form of regulated tokenized value. This ledger is designed to record, sequence, and validate transactions while enforcing rules through smart contracts. It will prioritize interoperability with both existing and emerging networks.
At Swift’s annual Sibos conference in Frankfurt, CEO Javier Pérez-Tasso announced, “We provide powerful and effective rails today and are moving quickly with our community to create the infrastructure stack of the future. This initial ledger concept is paving the way for financial institutions to enhance the payments experience with Swift’s trusted platform at the heart of the industry’s digital transformation.”
Financial institutions from 16 countries are offering feedback on the ledger’s design. Following successful development and proof of concept, the banking cooperative plans to collaborate with its global community and central banks for implementation.
Additionally, Swift announced plans to enhance interoperability across current and emerging systems to ensure efficient, synchronized transactions for various use cases.
In related news, Frankfurt-based fintech Swiat has recruited ten European financial institutions to support the launch of a European DLT Network Regulated Layer One. This initiative is based on the Swiat DLT network, which has been operational for over two years, successfully completing more than 40 transactions with a volume exceeding €600 million. The network will transition into a new cooperative structure owned and controlled by financial institutions.
Martin Müller, advisory board member of Swiat and board member of DekaBank, stated, “Our objective is clear: to position RL1 as a central pillar of the future European financial ecosystem, fully aligned with the ambitions of the ECB’s Appia track and the European Savings and Investment Union. The support of the ten initial market participants demonstrates this collaborative leadership, and I am confident we can secure further backing from private and public sector stakeholders.”