SWIFT Teams Up with Consensys to Revolutionize Cross-Border Payments with Real-Time Blockchain Technology
Global banking giant SWIFT just shook hands with blockchain powerhouse Consensys—and traditional finance might never be the same.
The Game-Changing Partnership
SWIFT's massive network is about to get a blockchain upgrade that could make international money transfers faster than your morning coffee brew. Consensys brings the Ethereum expertise while SWIFT brings the decades of banking relationships—talk about a power couple.
Real-Time Revolution
Forget waiting days for cross-border settlements. This collaboration aims to make payments instant—cutting through red tape like a hot knife through butter. Banks that used to compete with crypto now can't wait to adopt it—typical finance flip-flopping.
The Bottom Line
When traditional finance finally admits blockchain does it better, you know we've reached the tipping point. Another case of 'if you can't beat 'em, join 'em'—with banking executives suddenly becoming blockchain evangelists after years of dismissing it as a passing fad.
SWIFT’s pivotal tilt toward blockchain technology
SWIFT announced on Monday that it has initiated the groundwork, involving over 30 financial institutions globally, with the assistance of Consensys, to design and build the ledger. This initiative is primarily focused on delivering real-time, 24/7 cross-border payments.
The blockchain-based ledger will expand SWIFT’s communication into a digital environment, ensuring that banks continue to access trusted and scalable transfers of tokenized value.
SWIFT clarified that its collaboration with Consensys focuses on infrastructure, leaving the decision on which tokenized value to transfer across digital ecosystems to financial institutions and their respective central banks. Still, SWIFTY will work closely with the banks to provide support and onboarding on the new infrastructure.
The blockchain-based ledger is expected to support a secure, real-time log of transactions between banks, with key elements such as recording, sequencing, and transaction validation enforced through smart contracts.
SWIFT’s new blockchain infrastructure will strive for interoperability with existing and emerging networks. At the same time, it will not deviate from the system’s Core feature of maintaining trust, resilience and compliance for the critical functioning of global finance.
“Through this initial ledger concept we are paving the way for financial institutions to take the payments experience to the next level with SWIFT’s proven and trusted platform at the centre of the industry’s digital transformation,” SWIFT CEO Javier Pérez-Tasso stated during a conference in Frankfurt.
SWIFT has handpicked financial institutions from 16 countries worldwide to test and provide feedback on the design and capabilities of the blockchain ledger. Following the proof of concept, SWIFT will expand the test to more financial institutions ahead of wider implementation.
SWIFT has been criticized for slow transitions, with cross-border payments taking time due to the involvement of multiple intermediaries. The system faces other challenges, including high costs from correspondent banks, a lack of transparency, and sometimes inefficient account reconciliation.
The MOVE to a blockchain-based ledger could mark a major pivot, offering faster, cheaper and more transparent cross-border payments by eliminating the need for intermediaries as processes are automated through smart contracts.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
