SWIFT, the operator of the platform utilized by the worldwide banking system, has introduced twenty-two new banks to its ongoing blockchain technology proof-of-concept, deemed by SWIFT as the brand new standard for cross-border payments. In a statement, SWIFT has showed the addition of twenty two international banks to the proof-of-concept blockchain endeavor founded by six initial banks in April. SWIFT chose the Hyperledger Fabric, a manufactured from the open-source Linux basis-led Hyperledger initiative, for the core technology of the trial. The purpose of the blockchain technology trial is to allow banks to reconcile with their worldwide nostro accounts in real-time.
Nostro accounts are important to the worldwide banking system, allowing banks to deposit cash in specific nostro accounts all over the world. Those accounts facilitate international currencies transfers with recipients’ destination accounts receiving deposits from nearby nostro accounts. Damien Vanderveken, head of R&D of SWIFT Lab and consumer experience at SWIFT, defined the advantages of powering the world’s interbanking and economic messaging system with blockchain technology.
Damien Vanderveken stated:
“If banks could control their nostro account liquidity in real time, it might permit them to appropriately gauge how much money is needed in every account at any given point, permitting them to free up huge finances for different investments.”
The SWIFT’ blockchain will be created with a mixture of the currently launched Hyperledger Fabric 1.0 and key SWIFT assets to limit access to permissioned companions – the bank owning the nostro account and its corresponding banking partner. The twenty-two new participants include main banks from Asia, Europe, Africa, North America and Asia. The banks will act as a validation organization to check the blockchain technology software created by the original six founding participants in Australia and New Zealand Banking group, BNP Paribas, BNY Mellon, DBS bank, RBC Royal bank and Wells Fargo.
Wim Raymaekers, Head of Banking Markets at SWIFT, dit:
“This new group of banks permits us to significantly increase the scope of multi-lateral checking out of the blockchain software and therefore add great weight to the findings.”
The proof-of-concept blockchain will see testing during this summer season whilst outcomes are predicted to be published in September previous to a presentation at these 12 months’ Sibos conference in Toronto come October.
Such worldwide banks as ABN AMRO bank, ABSA bank, BBVA, Banco Santander, China construction bank, China Minsheng Banking, Commerzbank, Deutsche bank, Erste group bank, FirstRand bank, Intesa Sanpaolo, JPMorgan Chase bank, Lloyds bank, Mashreq bank, Nedbank, Rabobank, Société Générale, Standard Bank of South Africa, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, UniCredit and Westpac Banking Corporation are in the list of the twenty two banks, who will work independently of the founding six banks as testers and validators of the blockchain proof-of-concept.