Swift Launches Blockchain to Compete With Stablecoins

Swift, the international payments network, is launching its own blockchain to compete with the growing stablecoin industry. The move aims to modernize cross-border payments and allow banks to process transactions faster, cheaper, and continuously. This blockchain for payments will help Swift stay relevant as stablecoins like USDT and USDC increasingly bypass traditional payment rails.

Collaboration With Major Banks

Swift announced that it will work with leading banks, including Bank of America, Citigroup, and NatWest, to develop a shared digital ledger. The ledger will support tokenized products such as stablecoins, enabling banks to record, sequence, and validate transactions through smart contracts. By doing so, Swift intends to provide “instant, always-on cross-border transactions” at unprecedented scale.

The initiative highlights Swift’s recognition that traditional systems are slow and involve multiple intermediaries. Currently, cross-border payments can take up to five days, with high fees and complex regulatory checks. In contrast, a blockchain-based ledger could reduce delays, lower costs, and improve transparency for participating banks.

Response to Stablecoin Growth

Stablecoins have surged in popularity, now representing a $300 billion industry. They allow users to transfer funds directly without relying on intermediaries like Swift. Recent U.S. legislation regulating stablecoins has also encouraged banks to explore issuing their own tokens pegged to the dollar.

Meanwhile, European banks are moving in a similar direction. Nine banks, including UniCredit, ING, and Danske Bank, recently announced plans to launch a euro-denominated stablecoin by the second half of 2026. Swift’s blockchain will allow banks to compete with these initiatives and integrate stablecoin technology within regulated financial systems.

Technology Partnership

Swift is partnering with Consensys, the blockchain technology company led by Ethereum co-founder Joseph Lubin, to build the prototype ledger. Banks will test the platform to determine which currencies and transaction types to launch first. The collaboration emphasizes practical deployment rather than purely experimental technology.

Additionally, Swift is working on improving pricing and speed predictability for retail transactions. This complements the blockchain initiative, aiming to make payments more efficient while maintaining regulatory compliance and transparency.

Outlook for Global Payments

Analysts say Swift’s move could reshape the traditional payments landscape. By offering continuous, programmable, and faster transactions, Swift can reclaim some relevance against stablecoins. However, success will depend on adoption by large banks and integration into existing financial infrastructure.

With these efforts, Swift hopes to remain central to global finance, bridging the gap between conventional payment rails and decentralized finance innovations. The combination of blockchain technology, bank collaboration, and regulatory compliance could position Swift as a leading facilitator of digital cross-border payments in the years ahead.

#CrossBorder#PaymentsBankingInnovationblockchainDigitalCurrencyfintechStablecoinsSwift