SWIFT closer to adopting blockchain
A team of developers at SWIFT has completed a proof-of-concept built with the Hyperledger Fabric blockchain. SWIFT now hopes to have a system where member bank accounts would be moved to a distributed ledger, which could help it to reconcile in real time. The project is now ready for its next phase. Damien Vanderveken, head of SWIFT’s distributed ledger technology R&D effort, Australia and New Zealand Banking Group, BNP Paribas, BNY Mellon, DBS Bank, RBC Royal Bank and Wells Fargo have now been given access to the platform for further testing. If successful, SWIFT believes the tests could free up billions of dollars in dormant funds in banks’ nostro accounts, which are set up all over the world to hold various currencies just in case they’re needed for transactions. By moving the funds to a shared ledger, the test is seeking to confirm whether that practice can be eliminated, freeing up the capital to be invested in other ventures. The founding banks are expected to complete their work in September and 22 more banks would join the effort and validate the process.