Global financial messaging service, SWIFT will carry out a proof-of-concept on how the R3 Corda blockchain could help improve its payment settlement process.
The new development was reported by SWIFT’s CEO, Gottfried Leibbrandt at the ongoing Paris Fintech Forum and marks a major milestone both for R3 Corda and SWIFT. It also is a powerful demonstration of how blockchain technology is reforming many industries globally.
Nature of SWIFT and R3 Corda Trial
According to the announcement, the trial will involve the integration of some key SWIFT components with the R3 Corda blockchain. Among the things to be plugged into R3 include SWIFT and ISO standards, as well as support application programming interfaces (APIs).
The integration will allow financial institutions that are part of SWIFT’s network to authorize and settle payments with other firms by using the R3-connected GPI links. Confirmation for the transaction will then be sent to the R3 DLT trade platform through the GPI links.
The result would be faster confirmation and settlement of payments between the financial institutions and trading platforms such as e-commerce merchants or stock exchanges.
SWIFT’s chief marketing officer, Luc Meurant also asserted in the announcement that the integration with R3 Corda could see them engage with cryptocurrencies in the future. He said,
“While DLT-enabled trade is taking off, there is still little appetite for settlement in cryptocurrencies and a pressing need for fast and safe settlement in fiat currencies.”
In November we reported that Iran was disconnected from the SWIFT network following heavy sanctions imposed on the Islamic nation by the U.S.
Earlier this week, Iran announced that it would release its own cryptocurrency and also liaise with Russia to develop a blockchain-based SWIFT-like system that would allow it to engage in global trade.
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