Banks Unite Across Continents on Blockchain-Based Ledger

Seventeen banks across six continents are preparing to pilot live tokenized deposit transactions using Swift's blockchain-based ledger. This move is significant as it brings interoperability between conventional banking systems and digital money networks.

The project aims to make tokenized deposits work seamlessly across institutions, while preserving the compliance, liquidity, and risk controls attached to commercial-bank money. To achieve this, IBM has developed a bridge between banks' existing payment systems and Swift's blockchain-based ledger.

IBM's Digital Asset Haven integration uses ISO 20022 messages to connect conventional banking workflows with a network designed for always-on digital money. This allows financial institutions to instruct tokenized deposit transactions without replacing the infrastructure they already use.

The significance of this project is not about putting another financial product on blockchain, but rather making it possible for banks to interact with each other's tokenized deposits in real-time. The CFTC Chairman Michael Selig has noted that markets should prepare for 'mass tokenization' and 24/7 finance.