17 major institutions log in to test round-the-clock processing and fast global value transfers.
Swift announced that its blockchain ledger is ready for use for the first time, allowing early adopter financial institutions to support round-the-clock cross-border payments using token deposits.
The global consortium, known for its massive messaging network used by banks to transfer money, called it a decisive step to measure the benefits of digital currency.
Cross-Border Speed and Success
So far, 17 banks from six continents are preparing to test live transactions in the book. They include ANZ, BNP Paribas, BNY, Citi, DBS, First Abu Dhabi Bank, FirstRand Bank Limited, HSBC, Itaú Unibanco, Lloyds Bank, Mashreq, MUFG Bank, OCBC, Standard Chartered, UBS, UOB and Wells Fargo. The shared ledger gives these participating banks a more secure layer of bank-issued token deposits on their ledgers, Swift argues.
Swift said banks will achieve an improved customer experience and greater financial efficiency around the world—even at night and on weekends—without compromising existing regulatory compliance, credit, risk, and regulatory standards.
It is the first case using the ledger, which Swift announced last year and said it was designed and built with feedback from international financial institutions over nine months. Swift said this development sets the stage for development and collaboration with infrastructure, which he said is expected to move the equivalent of the world's GDP every two to three days between more than 200 markets.
“With our new ledger capabilities, we extend the trust and stability of established funds to the boundaries of digital currency. It allows aggregate value to exceed boundaries with the speed and flexibility expected of modern commerce, while maintaining the same high levels of robustness, security, and compliance with global financial needs,” said Thierry Chift, chief business officer at Swift. “The strong support from the banks shows the importance of this approach – which will help increase profits around the world while creating the basis for future innovation in areas such as structured finance and agent trading.”
Meeting the goals of the G20
After its first phase of going live, Swift plans to expand the functionality and availability of the ledger. This builds on its existing infrastructure, where 75% of network payments already reach beneficiary banks within 10 minutes, or seconds. This development is aimed at helping the industry to meet the goals of the Group of 20 international transactions.
Swift said it also uses a payment framework for stores and its community aimed at ensuring transparency, full value delivery, and a fast, consistent experience for consumers. Combined with the ledger, Swift said, that development lays the groundwork for value to move in any controlled manner, anywhere, with a high degree of security and stability.
Anthony Noto covers corporate finance and personal credit. Contact him at [email protected]
