The global financial messaging giant SWIFT is set to begin testing Hedera (HBAR) in 2025, marking a major step towards integrating blockchain with traditional financial systems.
Impact of SWIFT and Blockchain on Finance
With over 11,000 financial institutions connected, SWIFT processes vast transaction volumes daily. The integration of Hedera's distributed ledger technology (DLT) could accelerate cryptocurrency adoption and significantly alter approaches to real-time settlements, tokenized assets, and micropayments. At HederaCon, experts highlighted the potential impact of SWIFT's move on international banking operations.
Crypto Payments and Efficiency Improvements
Growing reliance on stablecoins and blockchain-based transactions stems from the inefficiencies of traditional financial systems. Unlike legacy banking, they offer lower fees and faster transfers, crucial for international transactions amid inflation. At ETHDenver, participants discussed regulatory and operational barriers to mainstream crypto payments adoption and SWIFT's role in this process.
SWIFT's Strategy for Blockchain Integration
SWIFT plans to focus on digital and traditional asset interoperability. By developing new messaging protocols and collaborating closely with bankers, they aim to ensure compliance of all digital asset transactions with regulatory standards. The testing will include 'delivery versus payment' and 'payment versus payment' mechanisms to enable cross-asset class settlements.
SWIFT's strategy to test Hedera (HBAR) marks a significant advancement in the integration of cryptocurrency and blockchain into the global financial system, opening new prospects for accelerated settlements and interoperability between fiat and digital currencies.
