u.today
Swift is currently developing a blockchain-based shared ledger network in partnership with Joe Lubin's Ethereum development firm Consensys, the Financial Times reports.
The yet-to-be-launched network will be primarily used for conducting real-time cross-border payments, meaning that it will be competing directly with Ripple. It is supposed to increase the speed of transitions and reduce fees.
The project involves more than 30 financial institutions from all over the globe, including U.S. banking giant JP Morgan and European heavyweight Deutsche Bank. All of these institutions will be testing out a prototype that is currently being developed in collaboration with Consensys.
It is worth noting that the infrastructure developed by Swift and its partners will support regulated stablecoins as well as tokenized assets. The system will support both public and private blockchains.
Defenise pivot
Swift's move to roll out its own blockchain is meant to ensure that the main messaging network for international payments will remain relevant amid the growing proliferation of stablecoins, according to the FT report.
The ledger network, which is currently under development, will dissuade banks from bypassing the Belgium-based group in the future.