In a significant move for the world of finance, SWIFT, the long-standing backbone of global financial messaging, is stepping into the blockchain arena. This week, SWIFT announced its ambitious plans to develop a shared ledger platform that will enable banks to conduct transactions involving stablecoins and tokenized assets across various blockchains. This development marks a notable shift for a more than 50-year-old organization primarily known for facilitating communication between over 11,500 banks, rather than directly transferring money.
SWIFT’s New Direction
Traditionally, SWIFT has served as the messaging layer for cross-border money movement, but this new platform positions it closer to the center of value transfer. Noelle Acheson, the author of the “Crypto Is Macro Now” newsletter, highlights this transformation as a fundamental change in SWIFT’s business model. “SWIFT, today, does not transfer value; it sends messages. On-chain, the message and the transfer are the same thing,” she explained.
Acheson suggested that the new platform could function as a “switching” layer for digital currencies and tokenized assets, bridging otherwise isolated systems. However, she also raised questions about SWIFT’s continued relevance in a world of programmable money. “Is SWIFT necessary in a tokenized financial system? No, it’s not—but it does have connections with virtually all global banks,” she noted.
Onboarding Banks to Stablecoins
SWIFT’s extensive network of connections could provide it with a distinct advantage as banks seek entry into the blockchain economy. Barry O’Sullivan, director of banking and payments at OpenPayd, pointed out the rapid pace of stablecoin adoption and the pressure on traditional banks to adapt. “The industry is moving at a rapid pace, and stablecoins are being adopted globally at such a speed that traditional banks are having to take notice,” he stated.
SWIFT has already engaged over 30 financial institutions in the project, with expectations for more to follow as demand and regulatory clarity increase. According to O’Sullivan, “Adoption, interoperability, and regulatory alignment will take time. However, SWIFT is clearly positioning itself to play a meaningful role in shaping the evolving stablecoin and tokenized asset ecosystem.”
David Duong, head of institutional research at Coinbase, believes SWIFT’s platform could significantly lower technical barriers and integration costs for financial institutions wanting to incorporate stablecoins into their operations. O’Sullivan also noted that the platform could bring “some standardization to the global stablecoin ecosystem,” although he acknowledged that fragmentation is likely to continue. “Existing private stablecoins, CBDCs, and regional solutions may continue to operate in parallel,” he said.
Years in the Making
Duong described SWIFT’s initiative as a “watershed moment” for both crypto and traditional finance, but he reminded us that it’s been years in the making. SWIFT has been experimenting with distributed ledger technology since 2017, conducting pilot projects with Chainlink, tokenized securities platforms like Clearstream and SETL, and interoperability tests with CBDCs. Developing its own shared ledger platform appears to be the next stage in this long-running transition, Duong explained.
However, not everyone views SWIFT as a neutral player. Its role in enforcing sanctions has led to distrust in countries where banks were cut off from the network, Acheson pointed out. “It’s not clear that its offering would stop the payment systems fragmentation, given global distrust following SWIFT’s role in enforcing U.S. and EU sanctions,” she argued.
A Convergence of Traditional and Blockchain Finance
Despite these challenges, SWIFT’s decision underscores the growing convergence between traditional and blockchain finance. The lines between the two are becoming increasingly blurred as the world’s largest financial institutions slowly, then suddenly, take initiatives to stay relevant in a rapidly evolving landscape.
In this context, SWIFT’s venture into blockchain signals a potential paradigm shift in the financial industry. It’s an acknowledgment that blockchain technology is not just a passing trend but a crucial component of the future financial ecosystem. Whether SWIFT can leverage its vast network and expertise to become a key player in this new landscape remains to be seen. However, its initiative is a testament to the dynamic and ever-changing nature of global finance.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
