Banks to pilot live transactions on Swift's blockchain-based shared ledger

Major banks are starting to test live payments using blockchain technology through the Swift network. This move aims to fix the biggest headache in consumer financing: the waiting game for funds to clear. Currently, moving money between different banks and lenders often hits delays over weekends or holidays. This new system uses 'tokenized deposits' to allow money to move 24/7, instantly. For a retailer or service provider, this represents a shift toward true real-time settlement for financed purchases. Think about the typical 'funding delay' your business experiences after a customer is approved for a loan. If this technology scales, the gap between a customer signing a contract and the cash hitting your business bank account could shrink from days to seconds. This improves your cash flow and allows for immediate product delivery or service starts. While this is currently in the pilot phase with 17 global banks, it signals that the banking backbone is finally catching up to the speed of modern retail. It reduces the 'liquidity friction' that often complicates high-ticket sales involving third-party lenders.

Source: Finextra

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