Global traditional finance (TradFi) payments system SWIFT said it is adding a blockchain-based ledger to its network.
SWIFT is working with a group of over 30 financial institutions to build a ledger that could make cross-border payments 24/7, based on a prototype by Ethereum developers Consensys, according to an announcement on Monday.
“The ledger will extend SWIFT’s financial communication role into a digital environment, facilitating banks’ movement of regulated tokenized value across digital ecosystems,” SWIFT said.
SWIFT is a messaging system that supports international bank transactions and is used by more than 11,000 financial institutions across over 200 countries.
Facing suggestions that it could be made obsolete by adoption of digital assets, particularly stablecoins, SWIFT has been experimenting with blockchain technology and tokenization for several years to try and get on the front foot against this potential disruption.
SWIFT said it envisages that the ledger will act as a real-time log of transactions between financial institutions, record, sequencing and validating transactions and enforcing its rules through smart contracts.
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