Distributed ledger technology (DLT) introduces a different model for moving value across borders – one that challenges the sequential, multi-party processes that underpin today’s correspondent banking. Rather than passing messages between institutions and reconciling positions at each step, participants operate from a shared, synchronised view of transactions – enabling value and information to move together in real time.12
At the centre of the new model are three emerging forms of digital money – stablecoins, tokenised deposits, and wholesale central bank digital currencies (CBDCs) – each addressing different use cases across the payments and settlement landscape (see our May 2026 flow whitepaper on digital money).
Stablecoins are blockchain-based tokens issued by banks, corporates or fintechs, typically backed one-for-one by fiat currency. While an estimated 95–99% of volumes still relate to crypto market activity, real-economy use cases are emerging. They are increasingly used for cross-border remittances and B2C payouts, particularly where speed, cost and access to US dollar liquidity are key.
Stablecoins will have a role to play in the future of cross-border payments. The question is to what extent, says Stepczynski. “Rather than a single future platform emerging, the likelihood is that there will be solutions for different use cases playing out on different rails. These will include stablecoins, but also tokenised deposits which are more flexible in application.”
Indeed, progress is more advanced around tokenised deposits, which represent commercial bank money issued on a blockchain, enabling funds to move between accounts with near-instant settlement, extended operating hours and embedded programmability (see the flow article, ‘How tokenised assets transform liquidity management’). Today, many implementations are bank-centric, supporting internal liquidity management and treasury use cases; however, the model is evolving toward cross-border applications.
Platforms such as Partior enable the real-time movement of tokenised commercial bank money between participating institutions, combining atomic settlement with pre-validation to reduce friction in cross-border payments. In September 2025, for example, Deutsche Bank announced that it had successfully conducted its first euro-denominated cross-border payment via Partior’s blockchain platform.
Wholesale CBDCs extend this concept to central bank money. While reserves are already held digitally in real-time gross settlement systems, tokenisation allows these settlement assets to be integrated directly into DLT environments. This enables atomic settlement across payments and securities, reducing counterparty risk and reliance on correspondent banking chains. Initiatives such as Project Agorá – also BIS-led, with a consortium of seven central banks and 40 private sector institutions including Deutsche Bank and Swift – are exploring how tokenised central bank money can interoperate with tokenised deposits on a shared ledger, effectively modernising interbank settlement.13
“Swift’s ledger addresses the core challenge of interoperability between banks’ tokenised value forms”Jonathan Ehrenfeld, Head of Strategy for Swift’s ledger
A central challenge in these developments is interoperability, as many initiatives still rely on specialised on- and off-ramps to connect with the traditional financial system. Improving interoperability would reduce the cost and complexity of linking systems, limit the need for multiple connections, and lower barriers between traditional and emerging infrastructures.14
Swift, for its part, is currently implementing a DLT-based shared ledger capability to enable institutions to coordinate tokenised value alongside existing payment flows, while maintaining alignment with global standards such as ISO 20022.15
“Swift’s ledger addresses the core challenge of interoperability between banks’ tokenised value forms, as well as coordination across institutions around the world, while also preparing the global ecosystem for the seamless entry of future forms of regulated digital money,” says Jonathan Ehrenfeld, Head of Strategy for Swift’s ledger. “Financial institutions can use their existing secure Swift connectivity to access and transact with regulated digital assets while maintaining the trust, resilience, and compliance that are synonymous with Swift.”
In March 2026, Swift completed the design phase of the ledger and built the first iteration to enable interoperability between banks’ tokenised deposits, facilitating 24/7 cross-border payments. The minimum viable product is planned to go live this summer with real-world transactions, allowing participating banks to execute real-time payments, gain a synchronised view of obligations, and test 24/7 payment flows.16