SWIFT takes another step towards the blockchain

The Society for Worldwide Interbank Financial Telecommunication (SWIFT), a Belgian company that specializes in transmitting information for making bank transfers, is currently testing blockchain technology. Its goal: to reduce production costs and improve its services by optimizing corporate action solutions that allow the management of a financial security (share or debt security).

A partnership between SWIFT and Symbiont to develop in the blockchain

To develop in blockchain, SWIFT announced that it has approached Symbiont, a fintech specializing in this technology for companies wishing to take the plunge. If the company is known for its payment system, it also offers solutions for business-to-business communication. Companies often tend to share strategic information for listed companies: dividend payments, arrival of new shareholders, mergers, demergers, etc.

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In order to streamline all of its operations, SWIFT announced in a press release that it would turn to the blockchain: “The automation of these communications has improved in recent years, but still relies heavily on manual processes that create additional costs and risks for market participants.“In August 2021, 55 of the world’s top 100 banks invested in blockchain or cryptocurrencies.

Considered as one of the components of the web of tomorrow, blockchain technology will automate some of the manual activities that revolve around business actions. Currently, SWIFT believes that 30% of the cost of these operations comes from manual activities, which are necessary, but which could be automated thanks to the blockchain.

SWIFT launches a first experiment to promote business automation

With the help of Symbiont, which has already worked alongside Nasdaq, the second largest American stock exchange after the NYSE, and the American group Vanguard, a pilot group has been set up that is trying to develop an experimental system. This should make it possible to automate all activities relating to securities transactions and thus improve the efficiency of their processing.

If the solution is successful, intermediaries will have to respond to fewer customer requests for business stock data. It also means that global custodians and wealth managers could reduce the number of people who spend their time manually processing corporate stock data.says Tom Zschach, SWIFT’s Chief Innovation Officer. The company would like to start testing at the end of the month.

In the past, SWIFT had been interested in technologies related to blockchain and cryptocurrencies. Specifically, it helped China develop its digital central bank (MNBC) currency: the digital yuan.

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