For decades, international transfers have been plagued by delays, high fees, and layers of correspondent banks. SWIFT, the backbone of global payments connecting more than 11,000 institutions across 200 countries, has long been central to this system. Now it’s preparing for a major shift. SWIFT and more than 30 of the world’s largest banks, including HSBC and JPMorgan, are building a shared blockchain-based ledger that will allow cross-border transactions to settle instantly, around the clock, and with built-in compliance features.
The move signals more than just a technological upgrade. If the trials succeed, this ledger could redefine how money moves internationally. Its impact will stretch well beyond financial institutions, touching industries from e-commerce to entertainment.
Industries in the Spotlight
SWIFT’s plans for a blockchain-based ledger will not just shape the future of banks and regulators. A wide range of industries that rely on fast, secure, and cross-border transactions are likely to feel the effects.
Global e-commerce is one of the clearest examples. Retailers that sell across borders often face slow settlement and costly currency conversions. Instant, guaranteed transfers would allow refunds to be processed quickly, improve cash flow, and lower the transaction costs that eat into margins.
Gaming and online entertainment are similarly exposed to the limitations of existing systems. Operators such as non UK online casinos depend on cross-border transactions in multiple currencies. Faster settlement could reduce payout delays for players, strengthen fraud controls through transparent ledgers, and make it easier to integrate stablecoins or tokenised deposits with traditional banking rails.
Travel and tourism could also benefit. Airlines, hotels, and booking platforms handle millions of payments between jurisdictions every day. Faster settlement between banks and providers reduces friction for customers and ensures businesses are not left waiting days for cleared funds.
Taken together, these examples show how a technical change in financial plumbing could ripple through industries where speed, cost, and trust in payments are vital.
The Core Technology
At the heart of this overhaul is a distributed ledger that records, validates, and sequences transactions in real time. Unlike today’s batch-based system, which can take several days to reconcile across different banks, this network is designed for continuous operation.
Smart contracts will play a central role. These automated rules can enforce compliance checks, sequence payments, and prevent errors without human intervention. Crucially, the system is intended to be interoperable with stablecoins, tokenised deposits, and potentially central bank digital currencies.
Tokenised deposits deserve special attention. These are digital representations of commercial bank money issued on a ledger, meaning they remain fully regulated bank liabilities rather than unregulated crypto assets. This makes them attractive to regulators and ensures that money moving on the ledger stays within the framework of the banking system. Stablecoins and CBDCs may also interact with the network, but tokenised deposits are likely to be the backbone because they combine digital flexibility with regulatory confidence.
Competitive Landscape and Adoption Risk
SWIFT’s blockchain initiative is significant, but it does not exist in a vacuum. The organisation has already modernised its existing system through SWIFT gpi, which provides same-day cross-border payments and end-to-end tracking. The new ledger represents an evolution rather than a replacement, moving from messaging and tracking to actual settlement finality.
Competition from blockchain challengers is also a factor. Ripple has long positioned itself as an alternative for instant cross-border settlement, but it faces hurdles with regulation and scale. SWIFT’s bank-led, permissioned model is strategically different. By keeping the system within the regulatory perimeter and backed by commercial bank money, it offers institutions and regulators a comfort level that crypto-native networks struggle to match.
Regional payment systems also shape the landscape. Europe’s SEPA Instant and the UK’s Faster Payments already provide rapid domestic transfers. For SWIFT’s ledger to become a true global standard, it will need to integrate with these national systems rather than compete against them, creating a seamless international layer above domestic rails.
What it Means for Traditional Finance
The first area of disruption will be correspondent banking. Currently, cross-border transfers often move through a chain of intermediaries, adding both time and cost. A shared ledger eliminates many of these steps, reducing counterparty risk and enabling banks to settle directly.
The cost savings could be significant. UK firms spend billions annually on cross-border transfer fees, costs that are ultimately passed on to customers. Real-time settlement could slash those expenses while improving transparency.
Regulatory compliance may also change. Built-in smart contracts can automate Know Your Customer and Anti-Money Laundering checks, speeding up approvals and reducing administrative overhead. Instead of compliance being an afterthought, it becomes a live feature of every transaction.
Regulatory and Governance Hurdles
Rolling out a single global ledger will not be straightforward. Regulatory fragmentation is arguably the biggest obstacle. Different jurisdictions impose divergent requirements for AML, KYC, and data privacy. The European Union’s GDPR, for example, sets strict rules for how personal data is stored and transferred, while US regulations focus more on financial disclosure. Designing a ledger that can satisfy over 200 regimes simultaneously is a formidable task.
Integration with legacy systems also presents a challenge. Upgrading the infrastructure of more than 11,000 member institutions will be a multi-year, multi-billion-pound effort. Larger global banks may adapt quickly, but smaller institutions could struggle with the investment required.
Governance is another delicate issue. With over 30 founding banks, reaching consensus on upgrades, resolving disputes, or fixing technical flaws will require careful coordination. A consortium model spreads influence but can slow decision-making compared to centralised systems.
Trade and SMEs in Focus
The benefits extend well beyond finance. For global trade, instant settlement could transform supply chains. Payment-versus-Payment and Delivery-versus-Payment models would allow goods to be released as soon as funds clear, cutting down the working capital businesses must tie up in delayed payments.
For UK small and medium-sized enterprises, this is particularly important. SMEs often struggle to compete internationally because of thin margins and high transaction costs. Faster, cheaper, and more reliable payments could make exporting more viable and reduce reliance on costly intermediaries.
What to Watch in the UK
In the UK, this shift dovetails with domestic experimentation in digital money. Banks, including HSBC, Lloyds, and NatWest, are already piloting tokenised deposits in partnership with UK Finance, testing how programmable money might support real use cases. The Bank of England has also called for stablecoins to be regulated like money, underscoring the importance of clear rules as digital assets move into the mainstream.
For British firms, the message is clear. Whether in retail, tourism, or entertainment, businesses that rely on cross-border flows should start preparing for faster, always-on settlement. That means rethinking treasury operations, compliance processes, and customer payment experiences.