SWIFT successfully tested the blockchain solution for the banking industry

SWIFT successfully tested the blockchain solution for the banking industry

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The World Association of Interbank Financial Communication Channels (SWIFT) published the results of testing the solution based on the distributed registry for Nostro’s correspondent accounts. Finextra reports.

In testing the DLT-solution based on the platform Hyperledger Fabric v1.0, 34 banks participated. Based on the results of the experiment, the researchers came to the conclusion that blockchain technology can be effectively used to coordinate international Nostro accounts in real time. At the same time, SWIFT participants believe that it is too early to apply new solutions on the scale of the entire interbank network.

“The proof of the concept (PoC) was implemented very well and confirmed that significant progress can be made with the use of distributed registry technology and Hyperledger Fabric,” Damien Vanderveken, head of the distributed systems development department at SWIFT, said. “The DLT sandbox has provided us with the ability to control access, identify and enforce user rights, manage sensitive data, provide them only to certain participants, and ensure the operation of a reliable identification system.”

Also, he said, the technology of the distributed registry will allow to better manage bank liquidity and more efficiently reconcile the Nostro accounts. Nevertheless, for the widespread implementation of blockchain in the banking sector, careful preparation of the relevant infrastructure is necessary, the work of which must meet many different requirements. Thus, the process of transferring banks to a block of flats can not be rapid.

To test the blockchain-solution, 528 channels were created, linking the Nostro accounts of 34 banks. According to the developers, the difficulty lies in the fact that for the full integration of the new system in the work of banks, it is necessary to open and further support more than 100,000 such channels. At the same time, SWIFT promised to continue searching for the possibilities for the most effective integration of DLT solutions into the banking industry.

This project is part of a larger SWIFT Global Payments Innovation (GPI) initiative that was launched in February 2017 and is aimed at transforming the correspondent banking system between banks.

Recall, SWIFT completed work on a prototype of the blockchain-based solution for managing Nostro accounts in real time in August last year.

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