Swift builds blockchain to counter stablecoin threat

Global payments co-operative Swift is moving into blockchain as it faces rising competition from the $300bn stablecoin industry.

Swift builds blockchain to counter stablecoins

The Belgium-based group, whose network links more than 11,500 banks and financial services companies worldwide, announced it is developing a shared digital ledger designed to support real-time, always-on cross-border transactions.

Acting Against Stablecoins

Swift’s move comes as stablecoins — digital tokens pegged to traditional currencies — gain traction among businesses and consumers seeking to move money instantly without intermediaries.

Issuers such as Tether and Circle dominate the sector, while banks from JPMorgan Chase to UniCredit are now exploring their own versions of the instruments.

A report by McKinsey earlier this year described stablecoins as a “direct challenge” to legacy networks such as Swift, highlighting that traditional international payments can take up to five days and often rely on cumbersome, semi-manual compliance checks.

New Swift Blockchain

The new Swift blockchain will be developed in partnership with Consensys, the Ethereum-focused technology company led by crypto pioneer Joseph Lubin.

A conceptual prototype is already under construction, with more than 30 financial institutions — including Bank of America, Citi, Santander, Deutsche Bank and NatWest — working alongside the co-operative to test its viability.

According to Swift, the ledger will act as a secure, real-time log of transactions, capable of recording, sequencing and validating payments.

Smart contracts will be used to enforce rules, while the system is being designed for interoperability with existing and emerging payment networks.

The initiative aims not to issue its own tokens but rather to provide the infrastructure for banks and central banks to exchange regulated tokenised assets.

Javier Pérez-Tasso, Swift’s chief executive, speaking at the Sibos conference, said that the project marked the start of a new chapter.

“Through this initial ledger concept we are paving the way for financial institutions to take the payments experience to the next level with Swift’s proven and trusted platform at the centre of the industry’s digital transformation,” he said.

The launch follows Swift’s recent efforts to enhance its existing rails. New rules introduced this month, also developed in partnership with major banks, promise faster cross-border payments for retail customers and small businesses.

According to Swift, recent upgrades now enable three-quarters of transfers to reach beneficiary banks within ten minutes, exceeding the G20’s own targets for speed and transparency.

With European banks preparing a euro-denominated stablecoin for 2026 and US authorities moving to regulate the sector, Swift’s pivot underscores the urgency with which incumbents are adapting.

Whether its blockchain can match the scale and efficiency of stablecoin networks remains to be seen, but the move signals that the world’s largest interbank payment utility has no intention of ceding ground.