Africa Digest News

From Johannesburg to New York to London, money never sleeps. But SWIFT’s latest blockchain pivot could make it move even faster.

With South Africa’s ABSA and FirstRand among the 30+ banks piloting the project, Africa finds itself at the centre of a global experiment to modernise cross-border payments with tokenised assets.

Powered by Ethereum developer ConsenSys on the Linea Layer-2 network, this initiative isn’t just about keeping up with crypto’s rise; it’s about redefining how the world moves money.

As Africa’s financial hubs deepen their blockchain commitments, this pilot signals a seismic shift: traditional finance isn’t just making small inroads into digital frontiers; it’s going all-in.

But why are ABSA and FirstRand, with their storied histories in South African banking, going all-in now?

The SWIFT Blockchain Pilot: A Game-Changer for Tokenised Transfers

At its heart, SWIFT’s new shared ledger addresses a longstanding pain point in cross-border payments: they’re often slow, opaque, and confined to business hours.

The pilot, involving banks like ABSA, FirstRand, ANZ, Banco Santander, and BBVA, aims to flip that script by leveraging blockchain for instantaneous settlement. Here’s how it works:

• SWIFT’s Role: The network handles the heavy lifting of recording transactions, sequencing events, and validating them through smart contracts ensuring atomic, synchronised confirmations across borders.
• Bank Flexibility: Institutions select their preferred token types (e.g., stablecoins like USDC or tokenised fiat deposits), bridging legacy systems with digital ones for seamless interoperability.
• Tech Stack: Built on ConsenSys’ Ethereum-based Linea, it prioritises scalability and compliance, tackling the “digital islands” fragmentation in tokenised finance.

This isn’t SWIFT’s first blockchain stage, but it’s the most ambitious. Early tests have already demonstrated 24/7 capabilities, with production timelines eyed for late 2026.

For ABSA and FirstRand, participation isn’t opportunistic; it’s a strategic anchor in a pilot spanning 16 countries and expected to influence payments in over 200 territories.

READ ALSO:Stanbic Bank to Bypass SWIFT for Yuan Payments via China’s CIPS System

South Africa’s Deep Blockchain Roots: From PoCs to Pioneers

ABSA and FirstRand aren’t blockchain newcomers; their involvement echoes a decade of innovation that positions South Africa as Africa’s fintech vanguard.

It started in 2017 with SWIFT’s Global Payments Innovation (GPI) blockchain proof-of-concept (PoC), where both banks joined a consortium including Standard Bank and Nedbank to explore distributed ledger tech for faster, traceable payments.

By 2018, they were among the first African adopters of SWIFT GPI’s full rollout, enabling 70% of payments to credit within 30 minutes and boosting regional competitiveness.

This momentum synced with the South African Reserve Bank (SARB)’s forward-thinking experiments.

In 2018, Project Khokha, a groundbreaking tokenised fiat interbank payments trial involved seven banks (including ABSA, FirstRand, and Standard Bank) and ConsenSys as the technical partner.

The 14-week simulation processed over 490,000 transactions valued at R3 billion (about $170 million) in under two hours, proving blockchain’s viability for wholesale settlements.

Building on that, SARB’s Project Khokha 2 (2021-2022) tested wholesale CBDCs for securities and loans, revealing strong interest in retail CBDC applications amid cross-border needs.

These efforts have cemented South Africa’s innovator status, especially as stablecoins explode globally.

In Q3 2025 alone, stablecoin transaction volumes hit a record $15.6 trillion, surpassing all of 2024 with non-bot activity (like retail payments) surging 150% year-over-year.

Stablecoins now dominate on-chain crypto activity, often accounting for over 50% of volumes in key periods, fuelling everything from remittances to DeFi yields.

Why It Matters: Anchoring Africa in the Tokenised Era

For ABSA and FirstRand, betting on SWIFT’s blockchain isn’t just about tech upgrades; it’s a bet on Africa’s economic future.

Here are the stakes:

In a region where 43% of crypto volumes are historically tied to stablecoins for stability, this cements Africa’s role beyond raw adoption;think innovation leadership.

The Road Ahead: Will Tokenised Finance Go Continental?

As SWIFT refines its ledger for production with pilots scaling to handle tokenised fund settlements and beyond, ABSA and FirstRand are positioned to lead.

Ultimately, this isn’t about banks versus blockchain; it’s symbiosis. By 2028, as DeFi revenues hit $180M in SA alone, expect ABSA and FirstRand to propel tokenised finance from pilot to pan-African powerhouse.

Complete Guide to SWIFT Banking:

When making international transfers, a SWIFT code is essential for identifying the correct bank. SWIFT banking enables secure and standardised SWIFT payments across borders.

In South Africa, for example, the FirstRand Bank SWIFT code South Africa also referred to as the FirstRand Bank SWIFT code FNB or simply the FNB SWIFT code, is commonly used for global transactions.

Similarly, the First National Bank South Africa SWIFT code ensures funds are routed correctly.

Other major banks also rely on this system, such as the Absa SA SWIFT code, which is often paired with an Absa IBAN number for transfers, and the Standard Bank SWIFT code, which is vital for overseas remittances.

Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.