How the Global Payments System Is Beginning to Open Up On‑Chain
Introduction
For decades, SWIFT has been the quiet constant in international payments. No network has stood more firmly for stability, neutrality and global reach. When money moved across borders, it almost always ran via SWIFT – slowly, reliably and deeply embedded in existing banking processes.
All the more remarkable, then, is what is now emerging. SWIFT is increasingly experimenting with blockchain‑based infrastructure, testing on‑chain settlement and working with major banks to connect traditional fiat payments with tokenised processes. At the same time, leading figures in finance are speaking unusually openly: tokenisation, they argue, could ultimately prove superior to traditional SWIFT flows.
This is not an obituary for SWIFT. It is a signal that even the most established infrastructure in global finance recognises that something fundamental is changing.
Background: What SWIFT Is Currently Testing
SWIFT is not a payment system in the narrow sense, but a global messaging and coordination network. It ensures that banks know who owes whom how much. Actual settlement then takes place in the respective clearing and settlement systems – often with time lags, intermediaries and manual reconciliation.
This is precisely where the current pilot projects come in. In cooperation with banks such as Citi, SWIFT is testing how traditional fiat payments can be combined with on‑chain settlement. The goal is to bring payment instructions and the actual transfer of value closer together and reduce media breaks.
The approach is deliberately evolutionary. SWIFT is not replacing its network but extending it. Blockchain‑based components are introduced where they offer a clear benefit: transparency, traceability and faster settlement.
The Real Driver: Tokenisation Rather Than Messaging
In parallel, the investment world is speaking with unusual clarity. Larry Fink, CEO of BlackRock, has repeatedly stated that tokenisation could, in the long run, be more efficient than traditional SWIFT flows. This is not just about faster payments, but a fundamentally different approach.
Tokenised assets and tokenised money can represent transfer of ownership and payment in a single, atomic process. Settlement risk is reduced, settlement times are shortened and processes can be controlled programmatically. In such a world, a separate messaging network becomes less central – because payment and settlement collapse into one technical operation.
SWIFT recognises this trend. The current experiments are less about defence and more about preparation: for a future in which payment messages are no longer the bottleneck, but where the key capability is to interconnect different systems.
Convergence Instead of Displacement
A sober assessment is important here. Blockchain‑based payment systems will not replace existing infrastructures overnight. Banks, corporates and states are deeply rooted in current processes. Compliance, liability and regulatory responsibility cannot simply be shifted “on‑chain”.
What we are seeing instead is convergence. Traditional networks like SWIFT and new on‑chain infrastructures are moving towards each other. Fiat money remains relevant, but is increasingly tokenised or complemented by stablecoins. Distributed ledger technology is not treated as an adversary, but as an extension.
For payments, this means a quiet but profound restructuring. Processes that were considered unchangeable for decades are being rethought – not out of a desire to innovate, but for reasons of efficiency.
What This Means for Companies
For companies, this development is highly relevant, even if it is not yet directly tangible. International payments are a source of cost and friction for many CFOs. Multi‑day settlement times, limited transparency and complex reconciliation processes are part of everyday life.
If even SWIFT is starting to test on‑chain settlement, this shows where things are heading. Not tomorrow, but over the coming years, new options could emerge: faster settlement, better traceability, lower settlement risk.
Here, too, awareness and capability are key. Companies do not need to re‑platform their payment flows today. But they should understand why these systems are changing, what role tokenisation and distributed ledger technology play and how this may ultimately affect treasury, ERP and payment processes.
Conclusion
The fact that SWIFT is testing blockchain‑based payment components is not a sideshow. It is a clear signal from the heart of global financial infrastructure – not as a break with the past, but as an adjustment to a new reality.
Tokenisation and on‑chain settlement are not a replacement for existing systems, but a catalyst for their further development. For companies, it is worth following this process closely. When even the quietest actors in the financial system begin to rethink their architecture, it becomes obvious that change is already underway – just more quietly than many expect.