According to The Financial Times (FT), traditional interbanking platform SWIFT is testing a new blockchain-based system to improve financial institutions’ services.
SWIFT is a Worldwide Interbank Financial Telecommunications platform, which was founded in 1973. It provides secure transactions between many banks all around the world.
FT states that with blockchain implementation participants of financial operation well get an access to edit information in real time.
The CMO of SWIFT, Luc Meurant claims there are still some payments which are “badly formatted and missing some information.”
“Instead of correcting that later in the chain and delaying payment, we are trying to anticipate as many of those issues as possible (with prevalidation) so payments can be processed faster,” sid Meurant.
SWIFT has been keeping an eye on distributed technology for a long time. Previously, in November, India’s credit card transactions operator, SWIFT India has partnered with fintech firm MonetaGo in order to develop and pilot a distributed ledger (DLT) network designed to improve the efficiency and security of financial products.
Earlier, Brad Garlinghouse, the CEO of Ripple, expressed his beliefs that more and more companies would turn to blockchain startup products, rather than SWIFT, because of the advantages of Ripple in speed and manufacturability.
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