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Taurus co-founder Lamine Brahimi says banks need their own permissioned ledgers, digital-asset wallets and tokenization and smart-contract capabilities to connect to Swift’s blockchain-based ledger. The network can coordinate round-the-clock transfers of tokenized deposits, but it does not replace banks’ internal systems or existing settlement arrangements.
Banks need three types of internal digital-asset infrastructure to connect to Swift’s blockchain-based ledger, Taurus co-founder Lamine Brahimi said in an interview with CoinDesk. His warning clarifies that Swift’s system is designed to coordinate transfers of tokenized deposits, not replace banks’ own ledgers, wallets or settlement arrangements.
Brahimi identified a permissioned ledger that can interact with Swift’s, wallet capabilities to manage digital assets, and tokenization and smart-contract tools for integrating with Swift’s contracts. These are requirements for participating in the system, rather than features that Swift’s ledger supplies on behalf of each bank, according to his account.
Swift’s ledger is intended to support cross-border transfers of tokenized bank deposits around the clock. Final settlement continues through existing arrangements, while banks retain the systems used to hold and manage deposits. Swift has described the ledger as part of efforts to modernize its bank messaging network, which has operated since the 1970s and, according to the source report, is involved in money movements of up to $1.5 quadrillion a year.
Several banks have already tested live payments. HSBC and Standard Chartered completed an interbank transaction on the ledger in August, while DBS and Citi later carried out a weekend cross-border dollar payment that settled in minutes, rather than taking up to two business days, the report said. Swift said in July that 17 banks were preparing live tokenized-deposit transactions; the report did not specify how many of those preparations have since resulted in completed payments.
The Infrastructure Banks Must Supply
The requirement makes clear that access to a shared payment network does not by itself give a bank the technical capacity to issue, hold and transfer tokenized deposits. Institutions need compatible systems on their side, which can mean additional integration work and coordination between vendors. For banks already handling digital assets, Brahimi said, that work need not be a major hurdle.
The distinction also matters for how the service should be understood. Swift’s ledger can coordinate faster, round-the-clock payment instructions, but it is not presented as a new settlement system that displaces current arrangements. Its potential role is to give banks another way to move deposits across borders while retaining their existing infrastructure and customer relationships.
Brahimi said the added requirements should not be treated as a design weakness or a sign that Swift will lose its position. He described the ledger as an early-stage product that offers banks a choice between existing payment rails and transfers using tokenized deposits. That choice may broaden institutional use of tokenized money, but participation depends on banks having or acquiring the necessary technology.
permissioned blockchain ledger for banks
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From Pilot Transactions to Participation
Swift has been a central messaging network for banks since the 1970s. Its ledger initiative adds a blockchain-based layer intended to help financial institutions coordinate transactions involving tokenized deposits—digital representations of deposits held at banks. Unlike stablecoins issued outside the banking system, the deposits remain on banks’ balance sheets, according to the report.
Banks have used tokenized-deposit systems internally, but moving funds between institutions requires compatible technology and shared standards on both sides. Brahimi said that use had largely been limited to very large institutions such as JPMorgan before Swift’s announcement, reflecting the challenge of connecting separate systems. Swift’s network could provide a common route for transactions, but banks still need systems that can connect to it.
Taurus announced its Swift integration in August. Brahimi said the firm’s platform provides the three capabilities he described: a permissioned ledger, wallet-management tools, and tokenization and smart-contract software. He said some alternatives may require banks to combine services from multiple vendors. That is Taurus’s description of its offering, not an independent comparison of providers.
“You need your own permissioned ledger that interacts with that of Swift, you need wallet capabilities, and you also need tokenization and smart-contract capabilities to be able to integrate the Swift smart contracts.”
— Lamine Brahimi
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Adoption and Integration Still Developing
The report does not say how many of the 17 banks preparing transactions have completed integration or when the remaining institutions expect to go live. It also provides no detailed timetable for broader availability, nor figures on transaction volumes, operating costs or the scale of demand beyond the reported pilot transactions.
Swift’s ledger is described as an early-stage product, so its longer-term performance and adoption remain uncertain. The report does not set out the technical standards banks must use, how widely participating systems will be interoperable, or whether institutions will need to source all three capabilities from one provider or several. The reported payments demonstrate activity, but do not establish how extensively the service will be used.
tokenization tools for financial institutions
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Banks’ Rollout and Live Payment Volumes
The next developments to watch are whether the banks preparing transactions move into live use, and whether further institutions connect their internal systems to Swift’s ledger. Updates on participation, transaction frequency and the time needed to connect could show whether the reported pilots expand into routine cross-border payments.
Swift’s ledger is intended to operate alongside existing payment and settlement arrangements. For now, the available reporting confirms several completed transactions and outlines the infrastructure Brahimi says banks need; it does not establish a timetable for a wider rollout or a replacement of current systems.
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Key Questions
What does Brahimi say banks need to connect to Swift’s ledger?
He identified a permissioned ledger that interacts with Swift’s, digital-asset wallet capabilities, and tools for tokenization and smart contracts.
Does Swift’s ledger replace banks’ internal systems?
No. It is described as an orchestration layer for transfers of tokenized deposits. Banks retain their internal systems, and final settlement continues through existing arrangements.
Which banks have completed transactions on the ledger?
The source report says HSBC and Standard Chartered completed an interbank transaction in August. It also reports that DBS and Citi later executed a weekend cross-border dollar payment that settled in minutes.
How are tokenized deposits different from stablecoins?
According to the report, tokenized deposits remain on a bank’s balance sheet. Stablecoins are issued outside the banking system, though their specific backing and arrangements vary.
Is Swift’s ledger widely available to banks now?
The report describes an early-stage product and says Swift had reported 17 banks preparing transactions in July. It does not establish how many are now connected or give a timetable for wider rollout.
Source: rss
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