IBM launches beta integration connecting Swift's ledger to round-the-clock tokenized deposit services

IBM launches beta integration connecting Swift's ledger to round-the-clock tokenized deposit services

Through IBM's newly released beta integration, financial institutions can direct tokenized deposit movements on Swift's distributed ledger while maintaining their current payment messaging infrastructure and regulatory compliance frameworks.

IBM has introduced beta-level connectivity allowing access to Swift's distributed ledger technology designed for tokenized deposits, alongside a beta capability enabling financial institutions to operate IBM's digital asset infrastructure within their own computing facilities.

The technology giant revealed these two enhancements to its Digital Asset Haven solution on Thursday. Banks taking part in Swift's initiative have conducted testing of tokenized deposits on the distributed ledger through the utilization of the platform, according to IBM's announcement.

IBM's Digital Asset Haven, which serves as the company's solution for banks and other institutions under regulatory oversight to administer and safeguard digital assets, now features a messaging adapter enabling organizations to direct tokenized deposit transactions through ISO 20022, recognized as the worldwide standard for financial messaging infrastructure. According to IBM, this allows financial institutions to leverage their established payment formats and existing compliance procedures rather than developing blockchain-specific operational workflows.

The financial services industry is entering a new era where tokenized and traditional assets will need to move side by side

Tom McPherson, general manager of IBM Z and LinuxONE

The global financial messaging cooperative Swift created the blockchain ledger in collaboration with more than 40 financial institutions and introduced it in July featuring 17 banks within its initial pilot group, which included HSBC, Citi, BNP Paribas, UBS and Standard Chartered. In August, HSBC and Standard Chartered successfully executed the first live cross-border transaction on the ledger.

The on-premises deployment option will operate on IBM Z and LinuxONE infrastructure without dependence on public cloud services, enabling banks and other institutions subject to regulatory requirements to maintain their digital asset operations and key management within the confines of their own data centers.