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
Nasdaq to support Chilean CSD in post-trade tech
25 May 2017 | Santiago | Reporter: Stephanie Palmer
Based on the Nasdaq Financial Framework the solution will replace Depósito Central de Valores’s existing core system
Linedata bolsters TA solution
26 April 2017 | London | Reporter: Stephanie Palmer
Linedata has upgraded it Linedata solution for transfer agents, to help clients to cope with increasing regulatory reporting requirements
Esprow launches MiFID II compliance platform
26 April 2017 | New York | Reporter: Becky Butcher
Esprow has launched ETP GEMS, a global exchange and markets simulation platform that provides an on-demand testing environment to facilitate compliance with MiFID II
SWIFT tests distributed ledger technology for reconciliations
25 April 2017 | Brussels | Reporter: Drew Nicol
The results of the proof of concept will be presented at Sibos in Toronto in October
ENSO and RSRCHX pair up for MiFID II solution
25 April 2017 | New York | Reporter: Drew Nicol
The NEX Group's ENSO, a centralised treasury management solution for the buy side, is set to expand its broker vote tool to include research consumption for the second Markets in Financial Instruments Directive
Law firm sees rise in fintech patents
20 April 2017 | London | Reporter: Mark Dugdale
The number of financial technology patents filed through the international system administered by the World Intellectual Property Organization has increased 49 percent in five years
Nomura taps Indian fintech start-up talent
19 April 2017 | Mumbai | Reporter: Drew Nicol
Nomura is looking to engage with Indian fintech expertise for capital market solutions
More technology news