Brussels
25 April 2017
Reporter: Drew Nicol

SWIFT tests distributed ledger technology for reconciliations


SWIFT is developing a proof of concept to assess the viability of distributed ledger technology for improving banks’ reconciliation of nostro accounts in real time.

In developing the proof of concept, SWIFT is leveraging the recently released Hyperledger Fabric v1 technology, and combining it with key SWIFT assets, to ensure that all the information related to nostro/vostro accounts is kept private and seen only by the account owner and its correspondent banking partner.

The proof of concept application will use a private permissioned blockchain in a closed user group environment, with specific user profiles and strong data controls. User privileges and data access will be strictly governed.

The data stored on the ledger and the application programming interfaces used to query and update it will also be designed to support ISO 20022 message formats.

The distributed ledger technology project is being conducted in collaboration with several transaction banks, including BNP Paribas, BNY Mellon, RBC Royal Bank and Wells Fargo, among others, and aims to optimise global liquidity.

According to SWIFT, these banks are working with SWIFT to identify the challenges, define the specifications, build the application and ultimately test the concept.

A further 20 banks will join the programme at a later stage to further validate and test the distributed ledger technology concept.

The results of the proof of concept will be presented at Sibos in Toronto in October.

More technology news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Saxo Bank extends FX Prime infrastructure
23 January 2018 | London | Reporter: Jenna Lomax
The new infrastructure, which will be available to clients in London and New York, offers full amount execution available through Saxo Bank’s DMA liquidity hubs
META launches new platform for software providers
19 January 2018 | London | Reporter: Jenna Lomax
META Finance is designed to help financial institutions and software providers face the challenges brought by fintech and regulations, such as General Data Protection Regulation
Raymond James selects Red Deer for MiFID II
16 January 2018 | London | Reporter: Jenna Lomax
Raymond James Investment Services has chosen Red Deer’s research valuation management solution to adhere to MiFID II
Northern Trust acquires technology resources from Citadel
12 January 2018 | Chicago | Reporter: Jenna Lomax
Citadel has agreed to give Northern Trust the software development rights for Omnium, a software solution, along with an undisclosed number of development staff
SETL and OFI AM being to process blockchain transactions on IZNES
11 January 2018 | Paris | Reporter: Jenna Lomax
IZNES, which is powered by SETL’s blockchain technology, has used the IZNES system in a series of trials with selected clients
DTCC launches new trade processing platform
10 January 2018 | New York | Reporter: Jenna Lomax
DTCC Exception Manager is DTCC’s latest addition to its trade processing product suite, supporting and securities transactions globally
Synechron: Innovation will remain key in 2018
09 January 2018 | New York | Reporter: Becky Butcher
Innovation will be the driving force in advancing key priorities such as compliance, risk and automation in 2018, according to Synechron
More technology news