SWIFT Launches Blockchain Ledger, Starts Tokenized Deposit Pilot with Global Banks

Settlement still tied to legacy systems

While the initiative enables round-the-clock movement of tokenized deposits, final settlement continues to depend on established systems. Decrypt reported that although Swift's pilot allows the 17 global banks to transfer tokenized deposits on weekends, ultimate settlement still runs through legacy infrastructure. This means the near-instant transfer capability sits alongside older settlement processes rather than fully replacing them.

The design reflects a phased approach, layering blockchain-based coordination over the banking rails that institutions already use, rather than swapping them out entirely.

Why interoperability matters

Supporters of the effort frame it around connecting fragmented digital money networks. BitKE quoted Andreas Kubli, Managing Director and Group Head of Digital Assets at UBS, as saying the company views interoperability as the key enabler for scaling tokenized deposits beyond individual institutions. According to the same report, Kubli said Swift's ledger is an important industry initiative that can help link digital money networks, supporting real-time settlement, greater liquidity mobility and broader adoption of tokenized payments and digital assets across the global financial system.

BitKE characterized the move as reflecting rising competition between traditional financial players and newer entrants in the digital assets space. For banks operating across regions with differing infrastructure and time zones, the ability to move tokenized deposits at any hour could reduce friction in international transfers, though the extent of any efficiency gains will depend on how the pilots perform and how settlement processes evolve.

The live pilots are set to begin among the selected banks, with the sources not specifying a completion date for the program.