SWIFT explores blockchain’s potential

Pushes for standards-based DLT

SWIFT, the cooperative that operates a global messaging platform for banks, and a group of central securities depositories will cooperate to explore the potential of blockchain-inspired distributed ledger technology (DLT).

SWIFT and seven CSDs — Abu Dhabi Securities Exchange, Caja de Valores, Depósito Central de Valores, Nasdaq Market Technology AB, National Settlement Depository, SIX Securities Services and Strate Ltd — have signed a memorandum of understanding that commits them to working together to investigate the potential for DLT to bring efficiencies to post-trade processes.

SWIFT said it expects more CSDs to sign on to the effort.

A key aim is to push for DLT-based solutions to support existing common standards such as ISO 20022, according to SWIFT.

“The promise of the technology on paper is great, but it is currently missing a key component around standardisation,” said SWIFT head of standards Stephen Lindsay,

There is clear value in re-using established business definitions and facilitating interoperability amongst DLT implementations, which this project will demonstrate.”

The MOU also includes a commitment to fostering R&D collaboration around DLT and developing additional use cases for the technology.

In December, the ASX announced that it would replace the Clearing House Electronic Subregister System (CHESS), which provides post-trade services, with a DLT-based solution based on technology developed by Digital Asset; a US firm that the ASX is a part owner of.

The ASX says the “next generation post-trade platform using contemporary technology” will offer benefits including cutting complexity for customers, and lower barriers to non-affiliated market operators and clearing and settlement facilities.

Read more: Maersk and IBM team up for blockchain-based global trade platform

The ASX’s DLT system will run on a secure private network.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Blockchaindistributed ledger technology

More about ABDLTISOTechnology

Show Comments