IBM Connects Banks to Swift's Blockchain Ledger for Tokenized Deposits

IBM has connected banks to Swift's blockchain-based shared ledger through a beta integration of its Digital Asset Haven platform. The integration, which is now available for testing by 17 first-mover institutions, allows banks to instruct tokenized-deposit transactions using existing ISO 20022 payment messages.

This technical detail may seem minor, but it is significant for banks that have been hesitant to adopt blockchain technology due to concerns about compatibility with their existing systems and infrastructure. IBM's adapter enables banks to send instructions to Swift's ledger without having to learn new interfaces or modify their existing processes.

Swift's shared ledger is designed specifically for bank-issued tokenized deposits, which are emerging as a popular alternative to stablecoins. Tokenized deposits offer the benefits of blockchain, such as programmability and faster settlement times, while remaining liabilities of regulated commercial banks.