From Hawala to Swift: Inside the 1,000-year battle to move money safely
This article explores the evolution of cross-border financial settlements, tracing the history from ancient hawala networks to the modern SWIFT system. It highlights how blockchain technology and stablecoins are now challenging traditional banking infrastructure by offering faster, more efficient transaction methods.
Why it matters
The shift from centralized banking systems to blockchain-based settlements represents a fundamental change in how global capital moves and is regulated.
For over 50 years, the messaging system developed by the Society for Worldwide Interbank Financial Telecommunications (Swift) has been the dominant infrastructure for cross-border settlement, routing roughly $5 trillion daily. However, facing pressure to improve speed, reduce cost and compete with the growing number of blockchain rivals, the bank-owned organization is under pressure to evolve.
In recent years, stablecoins and tokenized deposits have emerged as potential "SWIFT killers" , a phrase coined in a 2017 Brave New Coin analysis about Ripple, a blockchain designed to handle cross-border transactions. It took almost nine years for Swift to respond. Just last month, it unveiled a blockchain ledger and, shortly after, HSBC and Standard Chartered executed the first live transaction , settling in seconds rather than days.
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