In a significant development for the financial sector, Swift has announced its plans to develop a blockchain ledger in collaboration with over 30 global banks. This initiative, as highlighted by Chief Business Officer Thierry Chilosi during a recent appearance on Sibos TV, aims to enhance cross-border payments through a shared digital ledger. The first use case will focus on enabling real-time, 24/7 transactions.
According to the information released by Swift, the project is being designed with the assistance of Consensys, which is known for its work on Ethereum. Although Swift did not explicitly mention the Linea network, a Layer 2 solution on Ethereum, social media discussions have linked the two, suggesting a notable shift from traditional messaging systems to more efficient settlement rails.
Swift”s strategic move comes at a time when Ethereum”s exchange supply ratio has plummeted to approximately 0.137, a figure not seen since 2016. This metric, provided by CryptoQuant, indicates a declining availability of ETH on exchanges, which may reflect broader market trends of accumulation among institutional investors.
The exchange supply ratio measures the proportion of Ethereum held on trading platforms versus total supply, highlighting the availability of tokens for immediate selling. A lower ratio suggests that fewer coins are accessible on exchanges for trading, although it does not clarify the future movements of these assets.
Mark.eth, a notable figure in the crypto community, noted in a recent post that exchange balances have reached their lowest levels since 2016, asserting that institutions and corporations are accumulating ETH at an unprecedented pace. This accumulation could imply reduced selling pressure, similar to patterns observed in previous market cycles.
As Swift continues its development of blockchain infrastructure, the implications for both the banking sector and the Ethereum ecosystem are substantial. With over 11,500 institutions connected to its network and handling more than 53 million financial messages daily, Swift is positioned to significantly impact global financial transactions.
