Swift is building a blockchain platform to modernize
international payments amid growing competition from stablecoins.
According to the Financial Times, the payments
cooperative has joined forces with banks such as Bank of America, Citigroup,
and NatWest to create a blockchain that enables instant, continuous transaction
validation across borders.
Join stablecoin builders in London at the fmls25
This move is designed to streamline global transfers
and reinforce Swift’s role in a digital payments
Payments
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl
Read this Term landscape increasingly
dominated by stablecoins.
Swift’s Blockchain Project Responds to Stablecoin
Pressure
Stablecoins, digital assets pegged to fiat currencies,
have surged in popularity, offering low-cost, direct transfer options outside
traditional banking channels.
The sector, estimated at $300 billion, threatens
established payment networks by eliminating intermediaries and reducing
transaction times. Swift’s response is to implement a blockchain that can
sequence, record, and verify tokenized transactions, including stablecoins,
using smart contracts to enforce transaction rules.
Swift has partnered with Consensys, a blockchain
technology firm led by Ethereum
Ethereum
Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language,
Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language,
Read this Term co-founder Joseph Lubin, to develop and test
the new shared ledger.
Related: Coinbase to List First Singapore Dollar Stablecoin in Collaboration with StraitsX
The prototype will undergo trials with participating
banks to determine suitable currencies and transaction corridors for initial
rollout. The collaboration signals a significant step for Swift in embracing
blockchain technology for mainstream banking operations.
Banking Sector’s Digital Token Strategy
The push for blockchain comes as regulators and banks
globally explore digital currencies. Recent US legislation introduced in July regulates stablecoins closely, prompting banks, including JPMorgan Chase and Citigroup, to consider issuing proprietary stablecoins.
Meanwhile, nine European banks, led by UniCredit and
ING, reportedly plan to launch a euro-backed stablecoin by mid-2026, aiming to offer an
alternative to dollar-denominated digital tokens.
Alongside blockchain development, Swift is working to
enhance payment transparency with new measures to guarantee fee predictability
and instant settlement for retail transactions.
These changes respond directly to stablecoin
attributes, which prioritize speed and low cost. They provide users with full
transaction value and clarity on pricing.
The popularity of stablecoins is on the rise even as the
regulations catch up. Recently, the Australian Securities and Investments
Commission introduced temporary licensing exemptions for intermediaries that
distribute stablecoins issued by licensed entities.
The intermediaries distributing stablecoins issued by an
Australian financial services licensee are reportedly not required to obtain
their own AFS, market, or clearing and settlement facility licenses.
Swift is building a blockchain platform to modernize
international payments amid growing competition from stablecoins.
According to the Financial Times, the payments
cooperative has joined forces with banks such as Bank of America, Citigroup,
and NatWest to create a blockchain that enables instant, continuous transaction
validation across borders.
Join stablecoin builders in London at the fmls25
This move is designed to streamline global transfers
and reinforce Swift’s role in a digital payments
Payments
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl
Read this Term landscape increasingly
dominated by stablecoins.
Swift’s Blockchain Project Responds to Stablecoin
Pressure
Stablecoins, digital assets pegged to fiat currencies,
have surged in popularity, offering low-cost, direct transfer options outside
traditional banking channels.
The sector, estimated at $300 billion, threatens
established payment networks by eliminating intermediaries and reducing
transaction times. Swift’s response is to implement a blockchain that can
sequence, record, and verify tokenized transactions, including stablecoins,
using smart contracts to enforce transaction rules.
Swift has partnered with Consensys, a blockchain
technology firm led by Ethereum
Ethereum
Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language,
Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language,
Read this Term co-founder Joseph Lubin, to develop and test
the new shared ledger.
Related: Coinbase to List First Singapore Dollar Stablecoin in Collaboration with StraitsX
The prototype will undergo trials with participating
banks to determine suitable currencies and transaction corridors for initial
rollout. The collaboration signals a significant step for Swift in embracing
blockchain technology for mainstream banking operations.
Banking Sector’s Digital Token Strategy
The push for blockchain comes as regulators and banks
globally explore digital currencies. Recent US legislation introduced in July regulates stablecoins closely, prompting banks, including JPMorgan Chase and Citigroup, to consider issuing proprietary stablecoins.
Meanwhile, nine European banks, led by UniCredit and
ING, reportedly plan to launch a euro-backed stablecoin by mid-2026, aiming to offer an
alternative to dollar-denominated digital tokens.
Alongside blockchain development, Swift is working to
enhance payment transparency with new measures to guarantee fee predictability
and instant settlement for retail transactions.
These changes respond directly to stablecoin
attributes, which prioritize speed and low cost. They provide users with full
transaction value and clarity on pricing.
The popularity of stablecoins is on the rise even as the
regulations catch up. Recently, the Australian Securities and Investments
Commission introduced temporary licensing exemptions for intermediaries that
distribute stablecoins issued by licensed entities.
The intermediaries distributing stablecoins issued by an
Australian financial services licensee are reportedly not required to obtain
their own AFS, market, or clearing and settlement facility licenses.
