The “Trust Machines” of the Financial System

By their nature, public blockchains will show you who owns what, how much, and where it came from. When people refer to these blockchains as a “public ledger,” they really mean it.

• Public blockchains function as 'trust machines' by providing a transparent and verifiable ledger, significantly reducing the high costs associated with traditional financial trust mechanisms.
• The article argues that as the financial system increasingly issues assets on-chain, permissionless blockchain protocols will become the dominant infrastructure, driving productivity growth and GDP acceleration.
• It advises against relying on permissioned, off-chain guarantees, emphasizing that innovation will naturally move towards the efficiency and lower friction of on-chain systems.

Topics: Blockchain usage, Institutional adoption, Integration with defi, Ethereum evm l 1 s, On chain treasury management, Rwa collateral lending

Tags: #trustmachines #publicblockchains #costoftrust #financialsystem #onchainfinance #tokenizedassets #permissionless #blockchainledger #productivitygrowth #gdpacceleration

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Citi Completes Live Transactions on Swift Blockchain Ledger

Citi processed live native-ledger transactions with FAB and OCBC, extending Swift's tokenized-deposit payment pilot into two additional regions.

• Citi has successfully completed live tokenized-deposit transactions on Swift's blockchain ledger with First Abu Dhabi Bank (FAB) and OCBC, marking a significant step in cross-border payment innovation.
• This expansion of Swift's pilot program into the Middle East and Southeast Asia involves regulated banks and integrates with existing clearing and token services, demonstrating growing institutional adoption.
• While the pilot is controlled and runs until December 2026, the successful transactions highlight the potential for continuous, regulated cross-border payments, though commercial rollout details remain undisclosed.

Topics: Jurisdictions, Infrastructure providers, Payment system integration, Cross jurisdictional policy, Major financial incumbents, Cross border settlement

Tags: #citi #swift #tokenizeddeposits #blockchainledger #fab #ocbc #crossborderpayments #pilotprogram #digitalmoney

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HSBC and Standard Chartered Run First Live Tokenized Deposit Transfer on SWIFT’s Blockchain Ledger

"HSBC's interoperability transaction with Standard Chartered via SWIFT is a landmark moment for the promise of tokenised deposits," said HSBC exec.

• HSBC and Standard Chartered successfully conducted the first live tokenized deposit transfer using SWIFT's blockchain-based ledger.
• The transaction utilized SWIFT's ledger as an orchestration layer, with final settlement occurring on existing payment rails.
• This milestone is seen as significant for the future of tokenized deposits and digital asset strategies, with other major banks piloting similar initiatives.

Topics: Banks bankingsystems, Blockchain usage, Payment system integration, 28 1 custody asset servicing, 6 1 ethereum evm l 1 s, 15 3 cross border settlement

Tags: #tokenizeddeposits #swift #hsbc #standardchartered #blockchainledger #interoperability #hyperledgerbesu #digitalassets #settlement #paymentrails

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SWIFT Blockchain Ledger Goes Live as 17 Banks Join Deposit Pilot

SWIFT's new blockchain ledger is live after 9 months of development, with 17 major banks set to pilot tokenized deposit payments across borders around the clock.

• SWIFT has launched its new blockchain ledger, enabling a pilot program with 17 major banks to test tokenized deposit payments across borders.
• The initiative aims to facilitate 24/7 settlement for cross-border transactions, enhancing the speed and flexibility of international finance while maintaining existing compliance standards.
• This development aligns with a broader trend of regulated financial institutions adopting tokenized infrastructure, seen in parallel efforts by other banking consortia and stock exchanges.

Topics: Banks bankingsystems, Payment system integration, Blockchain usage, Custody asset servicing, Cross border settlement, Private enterprise ledgers

Tags: #swift #blockchainledger #tokenizeddeposits #crossborderpayments #pilotprogram #17banks #247settlement #digitalassets #programmablemoney

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