Swift blockchain ledger requires key internal layers, Taurus co-founder warns
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
Lamine Brahimi, co-founder of custody and tokenization firm Taurus, highlighted that Swift’s new blockchain-based ledger requires banks to maintain their own permissioned ledgers, digital-asset wallets, and tokenization and smart-contract capabilities to connect and operate on it. Swift’s ledger acts as an orchestration layer enabling 24/7 cross-border transfers of tokenized deposits but does not replace banks’ internal systems or settlement arrangements. Major banks including HSBC, Standard Chartered, DBS, and Citi have completed successful live transactions on the ledger.
Why it matters
This development signifies a step toward modernizing cross-border payments by enabling faster, around-the-clock settlement using tokenized deposits, which could provide banks with more options compared to traditional rails. However, it also underscores that banks must invest in additional digital-asset infrastructure before fully leveraging Swift’s blockchain solution, maintaining the institution-centric nature of tokenized deposits.
Key context
Swift’s payment messaging system has been dominant since the 1970s, handling up to $1.5 quadrillion annually. Tokenized deposits were previously used mostly by large global banks such as JPMorgan, without shared standards for interbank transfers. Swift’s new solution aims to provide a common ledger for tokenized deposits that remain on banks’ balance sheets, differentiating them from stablecoins issued outside the banking system.
Key numbers and entities
Lamine Brahimi (co-founder and managing partner of Taurus), Swift, HSBC, Standard Chartered, DBS, Citi, and JPMorgan are the main entities mentioned. Swift handles financial messaging for about $1.5 quadrillion per year. 17 banks are preparing live tokenized-deposit transactions on Swift’s ledger.
What remains unclear
The source does not specify the timeline for broader adoption of Swift’s ledger beyond pilot transactions, nor the exact technological or regulatory challenges banks may face in deploying their required internal layers. It is also unclear how this integration will impact smaller banks or cross-border payment costs.