Swift has announced that its blockchain registry is ready for its first banking operations. As part of the pilot, 17 financial institutions from around the world will test cross-border payments using tokenized bank deposits.
The new registry will allow banks to make cross-border transfers using tokenized deposits 24/7, while final settlement will continue to take place through the existing payment system. This approach combines new technology with the existing banking infrastructure.
The banks participating in the pilot program are BNP Paribas, HSBC, Citi, UBS, DBS, Standard Chartered, Wells Fargo, BNY, Lloyds Bank, MUFG Bank, OCBC, UOB, ANZ, FirstRand Bank, Itaú Unibanco, Mashreq, and First Abu Dhabi Bank.
According to Swift, around 75% of payments on its network currently reach the recipient bank in less than 10 minutes, while some transfers are completed in just a few seconds. The new registry will be used alongside the existing settlement system for transactions involving tokenized deposits rather than replacing it.
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