IBM Connects Banks To Swift Blockchain For Tokenized Deposits

IBM Digital Asset Haven now connects financial institutions to Swift's blockchain-based shared ledger via a beta integration. Banks can execute tokenized-deposit transactions using existing ISO 20022 payment messages. Currently, 17 institutions are testing Swift's ledger, which facilitates transactions around the clock before final settlement through established systems.

IBM's adapter allows banks to send instructions to Swift's tokenized-deposit ledger without requiring staff to navigate blockchain-specific interfaces, addressing a major barrier to institutional blockchain adoption. Swift connects over 12500 financial institutions across more than 200 markets.

Additionally, IBM is introducing an on-premises beta version of Digital Asset Haven, enabling institutions to operate the digital-asset platform within their own data centers using IBM Z and LinuxONE infrastructure. This offers banks greater control, which is crucial for heavily regulated institutions.

Tokenized deposits are becoming a preferred response to stablecoins, providing programmability and settlement advantages while remaining liabilities of regulated banks. IBM and Swift aim to make blockchain adoption operationally familiar, integrating ISO 20022 messaging and compliance processes with bank-controlled infrastructure.

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