SWIFT, the backbone of international finance, is undergoing a significant overhaul, including blockchain testing to enhance international payments.
Why SWIFT's Changes Matter Now
SWIFT is currently undergoing its largest technical overhaul in decades due to the migration to ISO 20022, which aims to improve the quality of financial data and enhance compatibility. This transition is expected to be completed by November 2025.
Context of XRP and HBAR in ISO 20022
Ripple (XRP) and Hedera Hashgraph are notable contenders for alignment with ISO 20022 data standards. Their technologies provide rapid integration and reduced barriers for payment and settlement improvements. XRP focuses on instant liquidity and solving cross-border payment issues, while HBAR offers stable operations and is designed not only for payments but also for asset management.
SWIFT's Experiments and Institutional Tests
SWIFT is conducting public trials and experiments with tokenization and multi-chain interoperability. These efforts do not yet endorse any single token but instead explore potential models for ensuring compatibility and regulatory compliance, along with evaluating factors such as governance structure and cost models that could influence the integration of various blockchains.
The discussions surrounding SWIFT's choices regarding XRP and HBAR highlight that the future of international transactions may involve the use of multiple technologies, paving the way for more efficient financial systems.
