Swift launches blockchain ledger for tokenized deposit pilot with 17 banks

Swift has launched a blockchain-based shared ledger that will allow 17 banks across six continents to pilot cross-border payments using tokenized deposits, marking the payment network's first live use case for the technology.

Participants in the initial pilot include Citi, HSBC, UBS, BNP Paribas, Standard Chartered, Wells Fargo, BNY, DBS, and MUFG Bank, among other global lenders, the payment network said in a statement on Thursday.

According to the statement, the shared ledger serves as an orchestration layer for bank-issued tokenized deposits, allowing participating institutions to transfer funds for customers around the clock, including overnight and on weekends, before completing final settlement through existing systems. 

Swift said the approach preserves the compliance, credit, risk, and control standards embedded in current payment processing while improving liquidity efficiency and client experience.

Swift unveiled the blockchain-based ledger last year and said it was designed and built in nine months with feedback from international financial institutions. The payment network said the pilot lays the groundwork for broader interoperability and future applications, including programmable money and agentic commerce. 

The Belgium-based cooperative provides secure financial messaging services to more than 11,500 banking and securities organizations, market infrastructures, and corporate customers across more than 200 countries and territories.

The rollout builds on Swift's broader push into tokenized finance. Last September, Chainlink expanded its collaboration with Swift by integrating the payment network's ISO 20022 messaging infrastructure with the Chainlink Runtime Environment in a live pilot with UBS Tokenize, enabling tokenized fund subscription and redemption workflows through institutions' existing systems.