The global banking network with cryptographic sauce? SWIFT will rise to the blockchain

In harmony – SWIFT wants to leverage the capabilities of Symbiot’s blockchain solution to optimize the transmission of data relating to important events within a listed company.

SWIFT and blockchain: more fluid communication of financial data

With a more decentralized approach, the banking network wants to renew itself. According to a September 13 press release, SWIFT will use Assembly, the blockchain platform from fintech firm Symbiot, as part of a pilot project that aims to improve transmission of data relating to major events within a publicly traded company, such as a merger or dividend payment.

SWIFT chief innovation officer Tom Zschach talks about harmonizing data from multiple sources to deliver “business action” through a combination of Symbiot’s SWIFT network, assembly capabilities and smart contracts.

Blockchain and smart contracts should therefore eliminate friction in the current communication process, which still requires manual actions and which requires the intervention of several intermediaries.

Decentralization of the data transmission process

During the transmission of this data, each actor involved uses standards whose specificities complicate the exploitation of the information by the recipients. Some information may also be “missing, contradictory or inaccurate”.

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Banks in the era of times, an essential blockchain

Seven securities industry organizations, including Citigroup, Vanguard and Northern Trust, are participating in this pilot project which, if successful, will significantly contribute to blockchain adoption within traditional businesses and financial institutions.

In terms of numbers, SWIFT connects over 11,000 banking and securities organizations, as well as market infrastructures and corporate clients, which are headquartered in over 200 different countries and territories.

With the rise of financial solutions developed by crypto companies, SWIFT must now integrate blockchain into its technology, to remain competitive. Back in 2019, Ripple CEO Brad Garlinghouse had shown the color, pointing out that Ripple wants to “take control of SWIFT”, thanks to its partnerships with over 1,000 banks using its technology.

SWIFT is therefore currently facing attacks on at least two fronts. On the one hand, blockchain and cryptocurrencies decentralize the transfer of values ​​and theoretically present themselves as a faster and less expensive transfer solution. On the other hand, central bank digital currencies could be a more attractive alternative to the network, according to Mastercard.

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