SWIFT to Launch Blockchain for Global Transactions in Bid to Compete with Stablecoins

SWIFT, the international payments network, is developing a blockchain-based ledger to accelerate cross-border transactions. The initiative, backed by major U.S. banks including Bank of America and Citigroup, aims to streamline tokenized asset transfers—particularly stablecoins—as their market capitalization approaches $300 billion.

The collaboration with Consensys will yield a test prototype, marking SWIFT's first foray into distributed ledger technology. Smart contracts will validate transactions on-chain, potentially revolutionizing a system connecting over 11,500 financial institutions worldwide.

This strategic pivot comes as traditional finance scrambles to match crypto's velocity. The ledger could position SWIFT as both competitor and infrastructure provider in the evolving digital asset ecosystem.