How Hedera Could Play a Role in Swift’s On-chain Future AllinCrypto October 1, 2025
Swift is finally beginning to realistically explore ways to integrate web3 solutions by creating its own distributed ledger network.
Recent collaborations with Chainlink have shown how Swift messages can trigger on-chain events without banks needing to overhaul their systems.
While Chainlink provides a powerful bridge for data and interoperability, Hedera Hashgraph could complement these efforts. Let’s explore how HBAR could benefit the Swift system.
Hedera as a Settlement Layer
One of the most clear opportunities for HBAR lies in Hedera becoming a sort of settlement layer for Swift’s workflows. Hedera’s Hashgraph consensus is able to reach finality within seconds and processes transactions for a fraction of a cent.
By integrating Swift messaging with Hedera, institutions could settle tokenized assets or payments in real-time while still using the same secure messaging standards that they rely on, such as ISO 20022.
Tokenization of Assets on Hedera
Hedera is being used to tokenize real-world assets such as carbon credits and UK money market funds by leading institions and banks.
Swift could leverage HBAR‘s capability to support the management of tokenized assets that Swift can deal with. Swift messaging could instruct actions like redemptions or transfers of tokenized securities on Hedera.
This unique combination would allow financial institutions to take part in the tokenized economy without leaving their existing Swift workflows and frameworks, ensuring compliance while unlocking efficiency gains.
Enterprise-Grade Governance on HBAR
A key factor that makes Hedera attractive for institutions is its unique governance model, led by corporations and web3 firms. Google, IBM, Arrow Electronics, and many more sit on the Hedera Council, each running a node to keep the network running.
Trust and legitimacy gained from the Hedera Council provide a way for banks to give the network a go, seeing trusted institutions already securing its decentralization.
Swift could benefit from Hedera’s structure by connecting its network to a distributed ledger that already aligns with enterprise requirements for stability and security.
Enabling Cross-Border Liquidity Management
Hedera’s architecture is suited for real-time liquidity movements, an area of importance for global banks and firms.
By combining Swift’s global reach with Hedera’s ability to move value near-instantly, institutions can more efficiently balance liquidity across borders and time zones, enabling true, 24/7 markets.
This mirrors the goals of recent Citi and JPMorgan pilots on digital liquidity networks, including Swift’s decision to develop its own DLT with the help of Chainlink in various ways. Swift wants transactions to be faster, but could they decide to reach out for collaboration between networks known for having some of the fastest transactions in the web3 industry?
Smart Contract Automation
Hedera’s smart contract capabilities can help automate complex financial workflows. A Swift instruction to redeem a tokenized fund could automatically trigger on-chain smart contracts that handle asset transfers, all compliance checks, and the eventual settlement.
This would reduce manual interventions and enable programmable finance at a global scale, similar to Chainlink’s partnership with Swift.
As Swift continues its journey into interoperability and the exploration of on-chain finance, Hedera offers unique advantages as a settlement layer, tokenization platform, and smart contract environment.
Its governance model, low-cost transactions with high throughput, make Hedera an attractive complement to messaging infrastructures and existing banking systems.
While Chainlink has already proven how oracles can connect Swift to on-chain benefits, Hedera could serve as the layer that helps execute the value layer, where the transfer of value and tokenized assets can take place.
The post How Hedera Could Play a Role in Swift’s On-chain Future first appeared on AllinCrypto.
