While Swift’s newly introduced blockchain-driven ledger is prepared for active payments, financial institutions still need to establish their own digital asset architecture prior to linking up, according to Lamine Brahimi, the managing partner and co-founder of custody and tokenization company Taurus.
During a conversation with CoinDesk, Brahimi stated, “If you want to connect today to the Swift ledger, you need three things. 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.”
This set of requirements indicates that the Swift ledger does not substitute a bank’s internal systems; rather, it functions as a coordination layer intended to let organizations transfer tokenized deposits internationally on a continuous 24/7 basis, while ultimate clearing proceeds through traditional frameworks. Participating banks must still maintain infrastructures capable of housing and administering tokenized funds, virtual wallets, and the associated smart contracts.
Swift announced back in July that 17 banks were preparing live tokenized-deposit transactions, marking its initial step toward updating its messaging network for banks, which has maintained a dominant position across traditional finance since the 1970s. At present, the network continues to dominate money movements of up to $1.5 quadrillion annually.
HSBC and Standard Chartered completed the first live interbank transaction utilizing the Swift ledger during August. Subsequently, DBS and Citi executed a weekend cross-border dollar transfer within minutes instead of waiting up to two business days.
Brahimi mentioned that this supplementary technology does not present an insurmountable obstacle for banking institutions that already issue or administer digital assets, nor will it prevent Swift from sustaining its market leadership.
Brahimi noted that the requirement for extra infrastructure should not be interpreted as a flaw in Swift’s architecture. He pointed out that the ledger remains an early-phase product, offering institutions a choice between legacy payment channels and tokenized deposits capable of moving around the clock. “I think it’s a good move,” he remarked. “That provides the choice.”
Taurus unveiled its Swift integration during August. Brahimi explained that his company delivers all three mandated layers via a single platform: a permissioned ledger, wallet administration tools, and software for tokenization and smart contracts. He added that alternative providers might compel banks to rely on multiple vendors to secure those identical functions.
The necessity for this underlying technology also explains why tokenized deposits remain largely confined to institutional clients. While banking groups have utilized internal tokenized-deposit systems for years, transferring capital between separate entities demands shared protocols and mutually compatible systems on both sides.
“Tokenized deposits until Swift’s announcement were barely used,” Brahimi observed. “They were mostly used by huge banks like JPMorgan, because they had such a big global scale.”
The Swift model retains deposits directly on the balance sheets of banks, setting them apart from stablecoins created outside the traditional banking ecosystem. Brahimi additionally mentioned that the ledger could supply banks with a standardized method to deliver round-the-clock payments without discarding their current infrastructure.
Originally published at https://www.coindesk.com/business/2026/10/07/swift-blockchain-ledger-requires-key-internal-layers-taurus-co-founder-warns.
