SWIFT launched a blockchain-based shared ledger with 17 major banks but explicitly excluded stablecoins and public tokens, signaling institutional preference for tokenized deposits over stablecoins to maintain banking system control.
DeFi & Yields ·
On July 9, SWIFT activated a blockchain-based shared ledger connecting 17 banks across 6 continents, including Citi, HSBC, UBS, and BNP Paribas, built on Hyperledger Besu and designed to enable 24/7 cross-border settlement within 9 months of development. The system explicitly excludes stablecoins and public tokens, permitting only tokenized bank deposits on the infrastructure.
The exclusion reflects a fundamental choice about financial control rather than technical capability. While stablecoins have long positioned themselves as faster alternatives to traditional banking, SWIFT's move demonstrates that institutional settlement speed is no longer the constraint—SWIFT now offers comparable velocity to 11,000 member institutions already embedded in the banking system. Tokenized deposits remain within the two-tier banking structure, whereas stablecoins draw cash into reserves outside traditional banks, reducing banking system liquidity.
The structural outcome remains uncertain. Whether major banks will issue public stablecoins independently or remain unified within SWIFT's walled ecosystem will signal whether the shift toward institutional tokenized settlement translates into sustained control consolidation. The resolution may unfold gradually across payment corridors over coming quarters rather than through immediate market moves.