The international payment system SWIFT, through which the lion’s share of cross-border transfers in the world passes, is planning to launch its own blockchain. This decision coincided with the growing interest in stablecoins and increasing discussions about competition with Ripple.
However, SWIFT’s strategy is different: it’s not about competing with a single fintech company, but about trying to maintain its position in the global race for digital money.
SWIFT and Consensys are building a shared ledger
The new SWIFT project is being developed jointly with Consensys — the company of Joe Lubin, which stands behind the Ethereum ecosystem. The initiative is based on a unified digital ledger for international settlements, capable of connecting different blockchains and traditional banking systems.
The solution is still at the prototype stage, but the world’s largest banks, including JP Morgan and Deutsche Bank, have already joined the testing. It is planned that the new blockchain will be able to work with stablecoins, as well as with tokenized assets — bonds, funds, and other instruments that are gradually moving into digital form.
An important element of the project is the connection with private and public blockchains. This will allow banks to join the platform without having to completely change their internal systems.
How SWIFT’s strategy differs from Ripple
Ripple has long been associated with cross-border settlements thanks to its connection with the XRP token. But SWIFT is taking a different path: instead of focusing on a single cryptocurrency, it is creating infrastructure that works directly with banks and financial organizations. This approach should ensure a smoother integration of blockchain into the existing international payments system.
Stablecoins as a threat to SWIFT
The main challenge for SWIFT today is not Ripple, but the rapid growth of stablecoins. These digital assets, pegged to fiat currencies, are used in transactions worth trillions of dollars. If banks start to massively switch to models with direct settlements in stablecoins, SWIFT’s traditional infrastructure may lose its significance.
To avoid such a scenario, the company is integrating blockchain technologies into its system. The new digital ledger should allow banks to use the advantages of stablecoins and tokenized assets while remaining within the SWIFT ecosystem.
Read also: SWIFT enters blockchain. Who will be the partner — XRP, HBAR or Linea?
The race for the future of payments
The international settlements market is on the verge of a massive transformation. Asset tokenization, the growth of stablecoins, and the emergence of new decentralized systems are creating competition for the trillion-dollar segment of global transfers.
The launch of its own blockchain gives SWIFT a chance to maintain its leadership and prevent banks from massively moving to new players. But the outcome of this struggle will depend on how quickly the system can move from prototype to real products and attract financial institutions.
Read more: Polygon launches a tokenized fund together with AlloyX and Standard Chartered
