Swift starts blockchain ledger with initial set of 17 banks Reuters
The move by Swift reflects a growing industry trend towards exploring blockchain technology for financial transactions, driven by demand for greater efficiency and transparency, and increasing readiness of institutions to adopt distributed ledger technology.
This initiative by Swift, a linchpin of global financial messaging, legitimizes blockchain's role in interbank settlements and could accelerate its adoption, potentially reshaping the future of global finance infrastructure.
Swift is now actively deploying a blockchain-based ledger for interbank transactions, moving from theoretical exploration to practical implementation with a significant number of foundational banking partners.
- · Swift
- · Participating banks
- · Blockchain infrastructure providers
- · Financial technology sector
- · Traditional correspondent banking models (long-term)
- · Less efficient settlement systems
The initial 17 banks will begin utilizing Swift's blockchain ledger for various transaction types, reducing settlement times and costs.
Increased adoption of this blockchain ledger could lead to the development of new financial products and services built on its more efficient infrastructure, potentially challenging existing payment rails.
Successful implementation may pressure central banks to accelerate their own digital currency initiatives and explore interoperability with such private-sector blockchain ledgers, leading to a hybrid global financial system.
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