IBM has announced the launch of a beta link that enables banks to facilitate tokenized deposit transfers on Swift's blockchain-based ledger. This innovation allows financial institutions to use existing payment messages and compliance processes, streamlining their operations.
The new feature is part of IBM's Digital Asset Haven platform, which now includes a messaging adapter that supports ISO 20022, the global standard for financial messaging. This means banks can leverage familiar payment formats without needing to create blockchain-specific workflows.
According to Tom McPherson, general manager of IBM Z and LinuxONE, the financial services sector is evolving, requiring the integration of both tokenized and traditional assets. This beta link represents a significant step in that direction.
Swift, in collaboration with over 40 financial institutions, developed this blockchain ledger, which was initially piloted with 17 banks, including major players like HSBC and Citi. The first live cross-border transaction was successfully completed in August.
Additionally, IBM's platform now offers an on-premises option that operates on IBM Z and LinuxONE infrastructure, allowing regulated institutions to maintain control over their digital asset operations and key management without relying on public cloud services.