IBM Launches Beta Swift Ledger Link for 24/7 Tokenized Deposit Transfers
(8 days ago) · 1 source · Summarized by CryptoBipto
IBM has opened a beta program connecting Swift's messaging network to blockchain-based ledgers, enabling banks to process tokenized deposit transfers around the clock. The initiative aims to bridge traditional banking infrastructure with distributed ledger technology. The beta is designed to allow participating banks to test real-time settlement of tokenized deposits through existing Swift connections.
WHY IT MATTERS
Think of Swift as the postal service that banks use to send messages to each other when moving money internationally. Right now, these transfers often only happen during business hours and can take time to settle. IBM is testing a way to connect this postal service to blockchain technology — a type of digital record-keeping system — so that a new kind of digital bank deposit (called a tokenized deposit) can be sent and received 24 hours a day, 7 days a week. If this works at scale, it could make the process of moving money between banks faster and more flexible. For people new to crypto, this is an example of how traditional finance companies are experimenting with blockchain technology not to replace the existing system, but to upgrade parts of it.
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- cointelegraph.com
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