Swift to run traditional payments and blockchain ledger in parallel
Swift is pursuing a dual strategy, developing both its traditional payment scheme and a blockchain-based ledger. It has connected 17 banks from six continents for 24/7 real-time payments using tokenised value across five currencies, while over 100 banks have signed up for its improved current paymen
Global financial messaging network Swift is following a strategy of developing both its traditional payment scheme and a blockchain-based ledger, as the cross-border payment ecosystem evolves, according to the organisation's website.
The blockchain ledger, built in nine months, has connected 17 banks including HSBC, Standard Chartered, Citi, DBS and OCBC from six continents to enable 24/7 real-time payments. It sends tokenised value between Africa, Asia, Australia, Europe, North America and South America, using five currencies: euro, British pound, Hong Kong dollar, Singapore dollar and US dollar. Use cases include institution-to-institution settlement, corporate treasury and interbank funding.
Meanwhile, Swift will continue to improve its current payments scheme, with over 100 banks signed up. The organisation aims to ensure cross-border payments have the same speed, transparency and predictability as domestic payments. According to Swift's website, examples of achieved speeds include 15 seconds from Turkey to Spain, 37 seconds from Australia to India, and just a minute from China to the United States.