Summary

Bank of America and JPMorgan Chase are among an initial group of about 60 banks in 25 countries that have adopted Swift's new cross-border payment framework, four months after the messaging association floated it. The framework is designed mostly to support smaller transactions such as remittances, along with near-real-time settlement and a transaction tracker, and includes a fixed fee as an alternative to variable rates for correspondent banks. The adoption comes as non-banks have made inroads into small-volume international payments, many using stablecoins or stablecoin technology to cut time and costs.

Key Facts

Why It Matters

Swift's framework adoption reflects the competitive pressure on traditional correspondent banking from digital transfer apps such as Visa Direct and Mastercard Move, and from digital assets such as fintech-issued stablecoins. By improving speed, predictability and pricing visibility, Swift aims to make cross-border payments "look and feel a bit more like a local payment." The framework's suggestion of tokenized deposits — a digital currency option many banks favor over stablecoins due to a perception of less risk — signals that banks are exploring blockchain rails while staying rooted in regulated commercial bank money. For the fintech sector, the development underscores that cross-border payments are not amenable to a single method; a mix of traditional currency, stablecoins, tokenized deposits and other options will be necessary to compete.

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