Swift has officially entered the next phase of its digital payments strategy by launching a blockchain-based ledger pilot involving 17 major financial institutions across six continents. The initiative represents a significant milestone for the global payments network, which already facilitates transactions equivalent to the world's GDP every few days. While the platform is not yet processing live settlements, the pilot marks an important step toward enabling 24/7 cross-border payments using tokenized bank deposits.
The announcement builds on technology first introduced during Swift's Sibos conference in 2025 and signals the company's commitment to modernizing international payments as competition from blockchain-based financial infrastructure continues to grow.
A New Infrastructure for Tokenized Banking
Rather than replacing existing payment rails, Swift's new blockchain ledger acts as an orchestration layer that coordinates commitments made between participating banks. Built on Hyperledger Besu, an Ethereum-compatible enterprise blockchain framework, the system records and validates payment obligations while allowing each institution to continue issuing its own tokenized deposits.
Unlike traditional payment systems that depend on banking hours, the new infrastructure is designed to support continuous, around-the-clock payment activity. Banks can exchange payment commitments instantly while completing final settlement through their existing internal systems during normal operating hours.
This architecture allows institutions to benefit from blockchain efficiency without replacing their current banking infrastructure, creating a bridge between traditional finance and tokenized assets.
Seventeen Global Banks Join the Pilot
The initial pilot features an impressive group of international financial institutions. Among the participants are HSBC, Citi, UBS, BNP Paribas, Wells Fargo, BNY, Standard Chartered, DBS, MUFG Bank, Lloyds Bank, ANZ, First Abu Dhabi Bank, FirstRand Bank, Itaú Unibanco, Mashreq, OCBC, and UOB.
HSBC has already confirmed that its Tokenised Deposit Service has been integrated with the new Swift infrastructure, demonstrating how participating banks will connect their own digital deposit systems to the shared ledger.
He also noted that the technology could eventually support emerging applications such as programmable money and agentic commerce, expanding its use beyond simple payment transfers.
Competition in Digital Settlement Is Intensifying
Although the pilot represents meaningful progress, live payment settlements have not yet begun. The project recently completed its design phase, and participating institutions are now preparing for production testing before handling real transactions.
The timing is significant as competition among major financial institutions intensifies. Large banks are investing heavily in tokenized deposits, blockchain settlement, and digital payment infrastructure to meet growing demand for faster international transfers that operate outside traditional banking hours.
Swift currently connects more than 11,500 financial institutions across over 200 markets, with approximately 75% of payments already reaching recipient banks within 10 minutes. However, weekends and overnight settlement remain limitations that blockchain infrastructure aims to solve.
At the same time, a separate consortium that includes JPMorgan, Bank of America, Citibank, Barclays, BNY, and Wells Fargo is also developing a competing tokenized deposit network scheduled for launch in 2027.
Blockchain Becomes a Core Banking Priority
Swift's latest initiative reflects a broader shift taking place across the global financial industry. Rather than viewing blockchain as a competing technology, many traditional financial institutions are increasingly integrating distributed ledger technology into existing payment systems.
The pilot demonstrates how banks are moving toward hybrid financial infrastructure, combining the reliability of traditional banking with the efficiency and availability of blockchain-based networks.
If the upcoming production phase proves successful, Swift plans to gradually expand both the functionality and availability of its blockchain ledger, potentially creating one of the world's largest institutional networks for tokenized cross-border payments.
The industry's next major milestone will be the successful completion of the first live payment using the new infrastructure, followed by broader adoption among global financial institutions as demand for 24/7 settlement continues to accelerate.
