A global race to speed up cross-border payments is underway, with the ECB–SNB link offering a possible template for instant payments.
The European Central Bank (ECB) and Swiss National Bank (SNB) are testing a link between their instant payment systems, which could serve as a blueprint for global real-time payments.
Announced on September 29, the concept would connect Eurosystem’s TARGET Instant Payment Settlement (TIPS) service with Switzerland’s Interbank Clearing Instant Payments (SIC IP) system.
TIPS, launched in 2018, allows euro-denominated instant payments to be settled in central bank money across the EU. SIC IP enables Swiss banks to process instant transfers in Swiss francs, providing immediate settlement for retail and corporate transactions.
The exploratory phase, running throughout 2026, will assess the technical, legal, and economic feasibility of linking the two systems.
This project forms part of a broader ECB effort to enhance cross-border payment efficiency within the EU and internationally, in line with the G20 roadmap for faster, cheaper, more transparent, and widely accessible global payments.
The last frontier in instant payments
Mike Walters, CEO at Form3, noted the significance of this initiative. He explained cross-border is the “last frontier” in instant payments, adding that “speed without reach is not enough”.
If successful, he emphasised this could serve as a blueprint for showing that real-time payment systems across the globe can be stitched together.
However, he noted it won’t be simple.
“Linking these two systems is about more than just payment architecture; it is about the operability and feasibility of lining up respective compliance, fraud controls and liquidity management checks,” Walters said.
“To support this, having the right tech stack that can meet the scale of these demands will be essential,” Walters said.
A tale of two visions: ECB vs Swift
Interestingly, this news comes on the same day as Swift’s announcement of its partnership with Consensys to build a real-time, blockchain-based infrastructure for cross-border payments. The goal is to eliminate intermediaries and enable 24/7 settlement using smart contracts.
This shows a clear difference in how global payments are evolving. While initiatives like Swift and Consensys use decentralised technology to create new rails, the ECB and SNB are focused on linking central bank systems that use public money.
The project highlights the desire of central banks to keep control over key financial infrastructure, rather than relying on private companies or blockchain-only platforms. It also reflects a wider push to build fiat-based systems which are fast, reliable and can compete with stablecoins and tokenised assets.
If it works, TIPS-based links could change the game for stablecoins, especially in Europe. Public systems offering instant, cross-border settlement in fiat money may reduce the need for privately issued stablecoins for things like remittances, trade and B2B payments.
This also ties into the discussion around tokenised deposits versus stablecoins, which has intensified in recent days. Banks and regulators are increasingly favouring tokenised deposits, digital claims on commercial bank money, as a safer, regulated alternative which preserves monetary control.
