The international payment system Swift has announced the launch of a blockchain registry, marking a new milestone in the development of global cross-border payments. This innovative infrastructure will cover over 200 countries, with more than 30 leading banks already participating, including Bank of America, JPMorgan, Deutsche Bank, HSBC, Santander, BNP Paribas, Standard Chartered, Wells Fargo, ANZ, BBVA, First Abu Dhabi Bank, and others.
This is reported by Finway
Blockchain Registry for the Payment Industry: Implementation Features
The project was presented at the Sibos conference in Frankfurt, where Swift agreed to collaborate with financial institutions and Consensys. As part of the first phase, a conceptual prototype will be developed to enable round-the-clock real-time cross-border payments. The blockchain registry will serve as a secure digital ledger for recording, verifying, and organizing transactions between banks.
“We are already providing powerful and efficient payment ‘rails’ today and are rapidly moving with the community towards creating the infrastructure of the future. With the new registry, we are paving the way for the next level of payment experience, keeping Swift at the center of the industry’s digital transformation,” said Swift CEO Javier Pérez-Tasso.
With the integration of the blockchain registry, participants will be able to use smart contracts, and the system will be compatible with both traditional and new payment networks. Swift emphasizes that the infrastructure will operate exclusively with regulated tokenized assets, and the choice of specific tokens will remain with banks and central banks.
Potential for Instant Multicurrency Settlements
A number of banks describe the initiative as a breakthrough for the financial industry. Nigel Dobson, head of banking services at ANZ, notes that the joint blockchain registry could be a decisive step towards the implementation of global instant cross-border transactions. AJ McCray from Bank of America highlights the importance of transparency and interoperability for the efficiency of international payments, while Bruno Mellado from BNP Paribas points to the formation of infrastructure for multicurrency settlements and the unification of different ecosystems through common standards.
After the prototype development phase is completed, Swift, along with partner banks, will conduct testing of the registry. It is expected that in the near future, this infrastructure will serve as the foundation for full-fledged multicurrency instant settlements and will ensure integration with both private and public blockchain networks.
The implementation of the blockchain registry is part of Swift’s strategy to modernize existing payment ‘rails’ and develop new digital tools for the financial industry. It is worth noting that in March 2024, information emerged about Swift’s plans to create a platform for connecting to central bank digital currencies (CBDC).