IBM Links Blockchain Platform to Swift's Shared Ledger
IBM has made significant strides in blockchain adoption by connecting its digital asset management platform to Swift's blockchain-based shared ledger. This move enables financial institutions to issue, transfer, and settle tokenized deposits using their existing payment messaging infrastructure.
The integration is facilitated through a new message adapter that allows financial institutions to process tokenized deposit transactions through ISO 20022, the global financial messaging standard. This reduces the burden of building an entirely separate messaging framework for blockchain transactions.
Tokenized deposits are digital representations of funds held in bank accounts, recorded on a blockchain. They offer faster and more transparent settlement compared to legacy systems, making them an attractive option for banks.