Swift, the Society for Worldwide Interbank Financial Telecommunication, is moving ahead with broader use of blockchain, or distributed ledger technology, in international interbank transfers, according to Nikkei. The group has started pilot programs with 17 banks worldwide, including Citigroup in the United States and Mitsubishi UFJ Bank, to test whether digitalized tokenized deposits can support instant cross-border remittances at any hour of the day and throughout the year. The trial is focused on using tokenized bank deposits to keep payment rails running continuously rather than within traditional banking hours. Nikkei said that if the initiative proves effective in cutting transfer times and lowering fees, it could help accelerate wider adoption of tokenized deposits across the banking sector.
Swift, the Society for Worldwide Interbank Financial Telecommunication, is pushing for broader use of blockchain, or distributed ledger technology, in international interbank remittances, according to Nikkei.
The organization has launched pilot programs with 17 banks globally, including Citigroup in the United States and Mitsubishi UFJ Bank, to test the use of digitalized tokenized deposits for instant cross-border transfers that run 24 hours a day, year-round.
Nikkei said that if the approach is shown to shorten remittance times and reduce fees, it is expected to support broader adoption of tokenized deposits.
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