Swift has launched its own platform for tokenized deposits.
Swift has announced that is is officially going live with its proprietary ledger system focused on scaling global payments. With already 17 global banks named as part of this launch, Swift is preparing for a new financial landscape with the rise of tokenized deposits.
This development has been in the making since last year, when Swift had hinted at working with different infrastructure providers, including Chainlink, as well as an in-house team, to modernize its global messaging system for daily payments and settlements between international banks.
Speaking to Stablecoin News, Co-founder of SquareFi Anton Lobintsev commented:
Deposits win the institutional core with interbank, treasury, wholesale, and stablecoins win the corridors banks don’t serve, counterparties with no correspondent relationship, anything that has to compose with the open stack. At the end of the day, institutions will run both.”
The nuance of tokenized deposits shows that the banking world prefer to keep familiarity with existing structures and legal protections surrounding consumers and clients, while improving the technology stack that ultimately underpins daily operations.
With this launch, Swift is now offering 24/7 tokenized deposits, with major banks ready to start, including: HSBC, Lloyds Bank, Standard Chartered, UBS, Wells Fargo, Citi, BNP Paribas, among others.
