Big Banks Bet on 24/7 Transfers
Seventeen major banks—including UBS, BNP Paribas, Citi, HSBC, and Wells Fargo—are set to test live transactions on Swift’s new blockchain-based ledger, a system designed to enable round-the-clock cros
Currently, Swift connects over 11,500 financial institutions across more than 200 countries and territories. This new initiative marks a significant shift for the network, which already sees 75% of its payments reach beneficiary banks within just 10 minutes. By integrating blockchain architecture compatible with Ethereum Virtual Machine (EVM) standards, Swift is positioning itself at the intersection of legacy finance and digital asset innovation.
The blockchain-based ledger was developed over nine months before this pilot phase with 17 banks.
UBS, Citi, HSBC Among Early Adopters
The group of participating banks includes several classified as Global Systemically Important Banks (G-SIBs), such as BNP Paribas, BNY Mellon, Citi, HSBC, Standard Chartered, UBS, and Wells Fargo. These institutions will be piloting the shared ledger to exchange tokenized deposits—digital representations of traditional money—across multiple blockchains and existing payment systems.
While Swift announced the development of this platform last October, it’s only now that these 17 banks are preparing for live transaction testing. The pilot’s controlled go-live phase is intended as a precursor to broader functionality and availability in the future. Notably, this comes just a month after a separate consortium—including JPMorgan Chase and Bank of America—revealed plans for their own tokenized deposit network targeted for launch in the first half of 2027.
Stablecoin Slump, Tokenization Surge
The timing of Swift’s pilot coincides with notable trends in digital assets. In June 2024, the stablecoin market cap dropped to $312 billion—the largest monthly decline since the collapse of TerraUSD. In contrast, volumes for tokenized equities surged by 145%, reaching $3.86 billion during the same period.
On paper, stablecoins are faltering while tokenization gains traction among institutional players.
This divergence highlights why banks may be turning toward tokenized deposits as a more stable alternative for cross-border settlements. For Swift’s pilot participants—many with global footprints—the ability to move value instantly across jurisdictions without relying on volatile crypto assets could offer practical advantages over existing stablecoin solutions.
See Also
Tokenized Deposits Meet Legacy Rails
Despite leveraging blockchain technology for instant transfers at any hour, one key limitation remains: final fiat settlement still depends on legacy banking rails operating during business hours. As reported by coindesk.com, while banks can move tokenized deposits overnight or on weekends through Swift’s blockchain ledger, the actual transfer of underlying funds is still tethered to conventional systems.
This hybrid approach means that although users may see near-instant movement of digital tokens representing deposits between institutions—even outside standard hours—the process isn’t fully detached from traditional infrastructure. It’s uncertain when or if full real-time fiat settlement will become possible without reliance on existing payment systems.
Banks maintain control over their assets within this shared environment; Swift’s ledger acts as a neutral platform rather than replacing institutional authority or custody arrangements.
Why It Matters
For businesses and individuals sending money internationally, the promise of always-on transfers could reduce delays caused by weekends or time zone differences—a persistent challenge in today’s cross-border payments landscape. With more than three quarters (75%) of current Swift payments already arriving within ten minutes under legacy systems, extending instant capabilities beyond business hours could further streamline global commerce.
However, until fiat settlement fully migrates onto digital rails—or central bank digital currencies (CBDCs) become widely adopted—some bottlenecks will remain. The pilot’s outcome will likely influence how quickly other financial institutions move toward similar models or wait for regulatory clarity and technical upgrades.
The next phase depends not just on technology but also on how regulatory frameworks adapt to these evolving models.
What remains under scrutiny
If the 17 participating banks—including UBS, Citi, HSBC, and Wells Fargo—successfully execute live tokenized deposit transactions during Swift’s pilot phase, it will immediately demonstrate the system’s ability to process 24/7 cross-border payments; however, whether ultimate fiat settlement can occur outside legacy business hours remains unclear.
