SWIFT closer to adopt­ing blockchain

Banking Frontiers - - News / 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.

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