UBS and Mizuho Complete Tokenized Interbank Payments via Swift Ledger
UBS and Mizuho interacted with Swift's ledger through commitment smart contract within their respective blockchain environments. Swift's ledger linked established the bilateral obligations and initiated settlement process according to Andreas Kubli, Group Head of Digital Assets at UBS.
➡️ Key signal: Tokenized deposit adoption is scaling amongst global banks supercharged by Swift's hub-of-hubs model.
Traditionally, one of the biggest barriers to institutional adoption of tokenized deposits has been interoperability.
Banks can build tokenized deposit systems individually. The harder problem is enabling those deposits to move across:
- different banks
- different blockchain networks
- different jurisdictions
- existing payment and settlement infrastructure
That is where Swift’s emerging hub-of-hubs orchestration model becomes important as I disected in the Strategic Edge note.
Rather than forcing banks onto a single blockchain or tokenized deposit network, Swift’s existing network and new orchestration capabilities help:
1️⃣ Preserve commercial bank deposits as money moves onchain
2️⃣ Reduce integration friction for banks adopting tokenized deposits
3️⃣ Extend tokenized deposits beyond closed-loop networks into cross-border and interbank payments
Swift is unlocking tokenized deposit adoption amognst global banks. The next phase of scaling will be less about which bank can build the best infrastructure, but how do banks leverage these new capabilities to compete.
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