Blockchains Were Meant to Replace SWIFT, But Now the Organization Is Building its Own

Core Insights - SWIFT's development of its own blockchain ledger in partnership with Consensys may hinder the global adoption of digital challengers like Ripple and Stellar [2][7] - Despite the promise of blockchains like Ripple and Stellar as alternatives to SWIFT, they have not significantly impacted SWIFT's market share in cross-border payments [1][5] Group 1: SWIFT's Position and Innovations - SWIFT has been upgrading its infrastructure to meet consumer expectations for faster money transfers, integrating systems like FedNow, but transfers can still take up to five business days [5][6] - SWIFT's innovation labs have been working on blockchain solutions since at least 2022, exploring the integration of central bank digital currencies (CBDCs) and tokenized assets into existing financial systems [6][8] - The organization is positioning itself as an intermediary that connects banks with emerging blockchain platforms, indicating a commitment to blockchain technology [7][8] Group 2: Competitors' Perspectives - Ripple has positioned itself as a direct competitor to SWIFT, arguing that blockchain technology can eliminate the need for intermediaries in financial transactions [3][4] - Stellar also critiques SWIFT's inefficiencies, suggesting that a faster and cheaper blockchain solution should replace the incumbent payment network [4]