Global network begins building blockchain-based coordination layer as banks prepare to trial real-time cross-border payments using tokenised deposits later this year
SWIFT has confirmed it is moving its blockchain-based shared ledger into implementation, with a minimum viable product (MVP) set to support live cross-border transactions later this year.
The Brussels-based network said it has completed the design phase of the ledger and is now building the first iteration of a system intended to enable interoperability between banks using tokenised deposits. The infrastructure is designed to support 24/7 cross-border payments, as demand grows for always-on services across financial markets.
The MVP will be tested through real-world transactions with participating banks, marking a shift from earlier experimentation towards production-level use. Swift said it is working with financial institutions globally to define a roadmap for future functionality, including the potential use of additional on-chain settlement assets.
The project builds on work first announced in September 2025, when a group of banks began exploring how a shared interbank ledger could improve coordination across cross-border payments. According to Swift, the initiative is intended to address long-standing frictions in international transactions, particularly around timing, visibility and reconciliation between institutions.
How will the model work?
At the centre of the model is a shared digital layer that records and validates interbank payment commitments. Rather than replacing existing settlement mechanisms, the ledger is designed to sit alongside them, enabling transactions to be coordinated using tokenised representations of commercial bank money while continuing to settle through established channels such as RTGS systems and correspondent banking relationships.
Swift will operate the ledger and manage the orchestration of transaction workflows, including the validation of funding commitments and coordination between participating banks. Individual institutions will retain control over their own environments, including assets, keys and liquidity management.
The technology underpinning the MVP is based on an Ethereum Virtual Machine-compatible architecture using Hyperledger Besu, an open-source distributed ledger platform. Swift said the system has been designed to integrate with the broader digital asset ecosystem while maintaining compatibility with its existing standards and network infrastructure.
Jonathan Ehrenfeld, who leads Swift’s ledger strategy, said the initiative is focused on extending the network’s existing capabilities into emerging forms of digital value.
“We’re focused on delivering the best possible cross-border payments experience, whatever form value takes,” he said. “Adding a blockchain-based ledger to our infrastructure will bring the benefits of digital finance into the ecosystem seamlessly and safely, at scale and without compromising the trust and resilience that are essential to global finance.”
Swift stated that the ledger is expected to deliver faster execution of cross-border payments, improved visibility of liquidity positions and reduced reconciliation requirements between banks. It also highlighted potential use cases beyond payments, including foreign exchange settlement on a payment-versus-payment basis and cash movements linked to securities transactions.
In the near term, participating banks will use the MVP environment to test continuous, 24/7 payment flows and assess how the coordination layer supports their operational processes. The use of tokenised deposits is intended to provide a synchronised view of obligations as transactions progress between institutions.
The shared ledger initiative forms part of a broader strategy by Swift to adapt its infrastructure to evolving payment models. Alongside the ledger development, the organisation is also preparing to roll out a new framework for cross-border retail transactions, with more than 25 banks expected to go live by the end of June.
That framework introduces new network rules aimed at improving transparency, predictability and speed for consumer and small business payments, including upfront visibility on fees, full-value delivery and instant settlement where available.
Swift said the parallel development of both initiatives is intended to support the transition to digital finance while maintaining compatibility with existing systems used by its network of more than 11,500 institutions across over 200 countries and territories.
