SWIFT, the global interbank messaging network, has announced the progression of its blockchain-based shared ledger to the first minimum viable product (MVP) stage, following a successful design phase involving over 30 global banks. This milestone marks a concrete step toward integrating distributed ledger technology into traditional cross-border payment infrastructure.
Technical Architecture and Participants
The shared ledger is built on Linea, an Ethereum-compatible Layer-2 network. The design phase, conducted with more than 30 banks, ensured the system meets institutional requirements. The MVP operates as a parallel track alongside SWIFT's existing messaging system, allowing banks to participate without overhauling internal processes.
Key Features and Benefits
The new ledger leverages smart contracts to enable real-time transactions, supporting tokenized deposits, regulated stablecoins, and central bank digital currencies (CBDCs). By merging messaging and settlement into a single layer, it eliminates multiple intermediaries typical of correspondent banking networks. Traditional cross-border payments suffer from delays, complex reconciliation, and opaque liquidity. SWIFT's blockchain solution promises faster execution through reduced reconciliation efforts and enhanced liquidity visibility.
Industry Impact and Outlook
This initiative directly addresses long-standing inefficiencies in cross-border payments. By offering a parallel track, SWIFT maintains legacy stability while introducing blockchain's transparency and speed. The MVP is set to handle real transactions later this year, demonstrating its practical viability. Success could accelerate adoption of blockchain for cross-border clearing among banks and central banks.
Source: CryptoComLearn | Tech News | OriginalLength: 2681. SWIFT's experiment provides a testbed for cross-border circulation of CBDCs and stablecoins, potentially reshaping global payment infrastructure.