IBM Links Banks to Swift Blockchain for Tokenized Deposits
IBM Connects Banks to Swift’s Blockchain Ledger for Tokenized Deposits
IBM has connected banks to Swift’s blockchain ledger to support the use of tokenized deposits, according to the announcement. The initiative links participating financial institutions with infrastructure designed to record and manage these digital representations of bank deposits.
Tokenized deposits represent traditional bank deposits in digital form on a blockchain or distributed ledger. They are intended to combine the settlement and programmability features of blockchain technology with the role of commercial banks in holding customer funds.
The connection is significant because it brings banks into a shared ledger environment through Swift, the global financial messaging network. It reflects the broader effort by financial institutions and technology providers to develop blockchain-based systems that can support digital forms of existing financial assets.
