Taurus Co-founder Says Banks Need to Build Three-Tier Infrastructure to Access Swift Blockchain

Taurus co-founder Lamine Brahimi stated that banks must meet three conditions to access Swift's newly launched blockchain ledger: a proprietary permissioned chain, wallet capabilities, and tokenization and smart contract capabilities to integrate with Swift's smart contracts. Brahimi pointed out that the Swift ledger is not a replacement for banks' internal systems but serves as an orchestration layer to help institutions achieve cross-border transfers of tokenized deposits, with final settlements still completed through existing arrangements. Banks need to manage tokenized deposits, digital asset wallets, and related smart contracts themselves. In July, Swift announced that 17 banks were preparing for real-time transactions of tokenized deposits; in August, HSBC and Standard Chartered completed the first real-time interbank transaction, followed by DBS and Citibank completing cross-border USD payments, reducing settlement times from up to two business days to just minutes. Brahimi emphasized that the additional infrastructure should not be seen as a flaw in Swift's design, as the ledger remains an early product, providing banks with a choice between existing payment channels and tokenized deposits. Taurus announced in August that it had completed Swift integration, offering the aforementioned three-tier capabilities. Tokenized deposits were rarely used before Swift's announcement, primarily adopted by large banks like JPMorgan, and the Swift model keeps deposits on banks' balance sheets, distinguishing them from stablecoins issued outside the banking system.

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