Swift's Tokenized Deposits Face Major Hurdle: Banks Need Their Own Blockchain Layers, Taurus Co-Founder Warns

Lamine Brahimi, co-founder of digital asset infrastructure provider Taurus, warned on Wednesday that banks must establish their own permissioned ledgers, wallet tools, and smart-contract capabilities before they can fully leverage Swift's tokenized-deposit network. Speaking on the sidelines of a financial technology conference, Brahimi emphasized that without these internal layers, financial institutions will struggle to integrate with Swift's emerging blockchain-based settlement system.

Swift, the global messaging network that connects over 11,000 financial institutions, has been piloting tokenized deposits as part of its broader strategy to modernize cross-border payments. However, Brahimi noted that many banks lack the foundational blockchain infrastructure required to participate. "Banks need their own permissioned ledger, wallet tools and smart-contract capabilities before they can use Swift's tokenized-deposit network," he said, underscoring the complexity of moving from traditional systems to decentralized ones. Taurus, a Swiss fintech, provides such infrastructure to banks and has been involved in several tokenization projects.

The warning comes as Swift races to keep pace with private stablecoin initiatives and central bank digital currency (CBDC) experiments. While Swift's network could eventually reduce settlement times and costs, the need for banks to build or acquire complementary technology may slow adoption. Industry observers suggest that partnerships with specialized firms like Taurus could accelerate the process, but regulatory clarity and interoperability standards remain critical. Swift has not yet commented on Brahimi's remarks, but the organization is expected to release further details on its tokenized deposit roadmap later this year.