Bank of America and JPMorgan Chase Adopt Swift's Cross-Border Payment Framework

Bank of America and JPMorgan Chase have joined Swift's new cross-border payment framework, which is designed to support smaller transactions such as remittances. The framework uses the messaging association's international network to connect different parties in a transaction.

The framework offers greater transparency, speed, and predictability, allowing customers to view the cost, exchange rate, and estimated processing time of a transaction. Receiving banks credit the receiving customer in near real-time, if the local market allows it.

Swift's chief executive for the Americas, Leigh Amaro, said that the framework is designed to deliver benefits such as greater transparency, speed, and predictability. AJ McCray, head of global payments products at Bank of America, noted that the Swift rail adds another option in addition to newer methods involving blockchains or other technology related to digital assets.

The correspondent banks that traditionally managed cross-border payments face competition from digital transfer apps such as Visa Direct and Mastercard Move. Stablecoins and tokenized deposits are emerging as new options for cross-border payments, with Swift itself creating an infrastructure for stablecoins.