Swift Launches a Service Based on Tokenized Money; Nium Buys Cypher – Digital Transactions

A blockchain ledger developed by the financial-messaging platform Swift debuted with an announcement early Thursday by the Brussels-based network. Declaring the system “ready for initial use,” Swift said the technology will enable cross-border payments at all times of day or night using tokenized deposits, or digital equivalents of fiat currency.

A pilot for the new initiative, now in preparation, will involve 17 banks on six continents, including BNY, Citi, and Wells Fargo in the U.S. market, reflecting what Swift calls “strong global demand” for faster money movement. Information was not immediately available regarding the start date for the pilot.

The bank-issued tokens represent deposits on the banks’ own ledgers, Swift says, and enable money movement at any time, including weekends as well as day or night. Settlement will be handled using existing processes, the network says, and will observe existing rules for compliance, credit, risk, and control.

The idea of developing such a ledger emerged last year, with Swift agreeing to develop its design and to build it. The network, founded in 1973, says it moves “the equivalent of world GDP,” or gross domestic product, every two to three days. With its existing design, Swift says three-quarters of the payments it handles get to receiving banks within 10 minutes, though frequently within seconds.

Swift clearly sees further developments in payments technology stemming from the initiative. “The strong support from banks shows the practical value of this approach — one that will help scale benefits globally while creating a foundation for future innovation in areas like programmable money and agentic commerce,” says Thierry Chilosi, Swift’s chief business officer, in a statement.

In related news concerning blockchain and cross-border payments, the cryptocurrency-payments platform Nium said it has acquired crypto-wallet developer Cypher. Terms of the deal, which is expected to bring to San Francisco-based Nium strengths in building and expanding crypto-related products, were not disclosed. Nium is a principal card issuer on the Visa, Mastercard, and Discover networks. Five-year-old Cypher is based in Palo Alto, Calif.