SWIFT to Develop Blockchain Platform for Stablecoin Transactions
SWIFT's Blockchain Transformation
- SWIFT is transitioning to a blockchain infrastructure provider, unveiling plans for a shared ledger platform.
- The platform will enable banks to settle transactions with stablecoins and tokenized assets across multiple blockchains.
- This marks a shift from SWIFT’s traditional role as a messaging service to being central in value transfer.
Implications of the Change
- Noelle Acheson notes SWIFT’s new model adapts to blockchain disintermediation, serving as a "switching" layer for digital currencies.
- SWIFT’s extensive bank network might facilitate their entry into the blockchain economy.
- The initiative could reduce technical barriers and integration costs for financial institutions interested in stablecoins.
Strategic Developments
- Over 30 financial institutions are engaged with SWIFT's project, indicating potential industry-wide adoption.
- The platform aims to standardize the global stablecoin ecosystem, though fragmentation may persist.
Long-term Vision
- SWIFT has been exploring distributed ledger technology since 2017 through various pilots and tests.
- Despite skepticism about its neutrality due to its role in sanctions, SWIFT is aligning itself with the evolving finance landscape.