IBM opens beta Swift ledger link for 24/7 tokenized deposits

IBM has added beta connectivity to Swift’s blockchain-based ledger for tokenized deposits and a beta option for banks to run IBM’s digital asset platform in their own data centers.

IBM on Thursday announced the two additions to its Digital Asset Haven platform. Financial institutions participating in Swift’s program have tested tokenized deposits on the ledger using the platform, IBM said.

Digital Asset Haven, IBM’s platform for banks and other regulated institutions to manage and secure digital assets, now includes a messaging adapter that lets institutions instruct tokenized deposit transactions using ISO 20022, the global standard for financial messaging. IBM said banks can use existing payment formats and compliance processes instead of building blockchain-specific workflows.

“The financial services industry is entering a new era where tokenized and traditional assets will need to move side by side,” said Tom McPherson, general manager of IBM Z and LinuxONE.

Swift, the global financial messaging cooperative, developed the blockchain ledger with more than 40 financial institutions and launched it in July with 17 banks in its initial pilot group, including HSBC, Citi, BNP Paribas, UBS and Standard Chartered. HSBC and Standard Chartered completed the first live cross-border transaction on the ledger in August.

The on-premises option will run on IBM Z and LinuxONE infrastructure without relying on public cloud services, allowing banks and other regulated institutions to keep their digital asset operations and key management within their own data centers.

Related: Citi, DBS complete first weekend tokenized cross-border deposit on Swift