Key highlights:
- IBM links Digital Asset Haven to Swift’s blockchain ledger through a new ISO 20022 messaging integration
- 17 global banks are testing tokenized deposits for potential 24/7 cross-border payments
- IBM launches an on-premises beta that lets regulated institutions manage digital assets within their own data centers
As banks are increasingly exploring blockchain for faster cross-border payments, IBM is adding a new infrastructure to support it by connecting its Digital Asset Haven to the Swift blockchain. This move allows regulated institutions to manage tokenized deposit transactions through existing banking systems.
IBM brings tokenized deposits to Swift’s blockchain ledger
In an official press release, IBM announced that the company is connecting its Digital Asset Haven platform to Swift’s blockchain-based shared ledger via a new beta integration. Using an ISO 20022 Messaging Adapter, the integration allows banks to send instructions for tokenized deposit transactions through the same messaging systems that they already use. Thus, the institutions do not need to build new workflows for blockchain transactions.
Notably, banks can use the Swift ledger to coordinate tokenized deposit payments, with final settlements taking place through existing financial systems. This allows institutions to explore blockchain-based payments without having to completely change their existing banking infrastructure. Tom McPherson, General Manager, IBM Z and LinuxONE, stated,
“The financial services industry is entering a new era where tokenized and traditional assets will need to move side by side…By connecting to Swift’s shared ledger and extending IBM Digital Asset Haven to on-premises environments, IBM is helping clients participate in emerging digital asset networks while prioritizing control of their most critical financial operations.”
It is worth noting that Swift’s blockchain ledger uses an Ethereum Virtual Machine-compatible architecture based on Hyperledger Besu. This ledger helps coordinate payment commitments between banks. At the same time, institutions can maintain control over their assets, funding, and keys.
Digital Asset Haven gets new on-premises option
In addition, IBM is also expanding Digital Asset Haven with a new on-premises beta option. This is for clients who intend to keep their digital asset operations within their own data centers. It will run on IBM Z and IBM LinuxONE systems, allowing regulated institutions to manage assets like stablecoins and tokenized deposits without depending on public cloud infrastructure.
IBM noted that clients can install the platform on IBM hardware. The on-premises version also uses the same architecture, APIs, and workflows as IBM’s Saas and Hypbrid Saas versions. This makes it easier for existing users to switch between the setups.
17 banks join Swift’s tokenized deposit pilot
Interestingly, Swift has spent almost nine months developing its blockchain ledger with the help of more than 40 financial institutions. In July, Swift noted that 17 banks had joined the first group to test actual transactions using tokenized deposits. The banks include Standard Chartered, ANZ, BNY, Citi, BNP Paribas, First Abu Dhabi Bank, FirstRand, DBS, HSBC, Itaú Unibanco, Lloyds Bank, Mashreq, MUFG, OCBC, UBS, UOB and Wells Fargo. The initial focus of the project is to enable 24/7 cross-border payments using tokenized deposits.
Since then, the ledger has been witnessing increasing activity between institutions. HSBC and Standard Chartered reportedly completed a live interbank transaction via the infrastructure in August. Taurus, a digital asset infrastructure provider, has also connected its custody and tokenization services to the Swift ledger.
Source:: IBM Links Digital Asset Haven to Swift Blockchain in New Bank Pilot