Swift's Future Hangs in Balance as Stablecoins Gain Ground

For decades, Swift has been the backbone of international banking infrastructure, but the rise of stablecoins threatens its relevance. These digital assets offer a new way to move money around the clock and without traditional bank messages.

To adapt to this shift, Swift is embracing blockchain technology. In August, HSBC and Standard Chartered completed the first live interbank transaction through the organization's new blockchain-based ledger using tokenized bank deposits. Final settlement still occurred through existing banking infrastructure.

Stablecoins change the payment route by moving both payment information and digital money through a single network that operates 24/7. This is particularly beneficial in areas with underdeveloped or expensive correspondent banking chains. However, the scale of stablecoin competition can be overstated, with total transaction volumes amounting to tens of trillions of dollars.

While this figure may seem significant, estimates suggest annual stablecoin payment volume stood at around $390 billion in late 2025, with roughly $226 billion coming from business-to-business payments. This is relatively small compared to the global payments system, and the threat to Swift lies less in current volumes than in the ability of a new payment model to bypass parts of existing banking infrastructure.

As banks tokenize their money, they preserve relationships with customers while offering round-the-clock settlement and digital asset interaction. Tokenization also creates a new problem: different systems may use incompatible technology, risking fragmentation across the financial market.