SWIFT Takes Aim at Cross-Border Payments with Always-On Blockchain Solution

SWIFT has announced its blockchain product video, aiming to create an 'always-on' ecosystem for cross-border payments. The network's goal is to have a compliant and interoperable system that can handle tokenized value within regulated systems.

Avalon Ingram, SWIFT's Digital Assets Lead, emphasized the importance of coordination, transparency, and compliance in cross-border flows. According to Ingram, 'The goal is always-on payments. Coordinated, transparent flows across the global financial ecosystem.'

The announcement has significant implications for Ripple's ODL (On-Demand Liquidity) product, which converts sending currencies into XRP, moves it on the XRP Ledger in seconds, and converts out at the destination.

Ripple had previously pitched its XRP solution as a liquidity provider, but with SWIFT's native digital rail, banks may not need ODL. However, Ripple still has an optional route through partners such as Thunes.