[2017-04-27] Firstpost: Swift starts testing viability of blockchain

Swift starts testing viability of blockchain for international interbank financial transactions

http://tech.firstpost.com/news-analysis/swift-starts-testing-viability-of-blockchain-for-international-interbank-financial-transactions-373753.html

Society for Worldwide Interbank Financial Telecommunication (Swift) has announced that it is developing a proof of concept (PoC) application in collaboration with banks around the world. The PoC is evaluating the effectiveness of Distributed Ledger Technology, or blockchain, in improving the real time reconciliation of accounts by banks held in foreign currency, known as nostro accounts. The exercise is an effort to optimise the global financial liquidity.

Australia and New Zealand Banking Group, BNP Paribas, BNY Mellon, DBS Bank, RBC Royal Bank and Wells Fargo are some of the banks participating in the pilot phase of the introduction of blockchain technologies for nostro accounts. An additional 20 banks are expected to join the tests. During the course of the test, challenges will be identified, specifications will be decided, and the application will be improved based on feedback. The PoC is meant to make cross border financial transactions more efficient.

Wim Raymaekers, Head of Banking Markets and Swift gpi at Swift says “The nostro DLT proof of concept is deeply embedded in the SWIFT gpi story of streamlining the cross-border payments system. It allows us to explore how this maturing technology can provide a collaborative solution to what our gpi member banks have identified as a significant pain point – nostro accounts reconciliation.”