Senior SWIFT Executive, Lisa O’Connor, talked with CNBC’s Crypto Trader, Ran Neuner, about the involvement of the company with Distributed Ledger Technology (DLT). SWIFT is the largest messaging service platform and company around the world that connects over 11,000 banks and financial institutions around the world. The firm would be competing against Ripple in terms of the development of blockchain technology for cross-border payments.
SWIFT Works with Blockchain Technology
At the end of January, the company announced that it was supporting the growing demand for reliable and secure settlement. This is why the firm decided to launch a new proof of concept (PoC) to test a new system to interlink trade and e-commerce platforms with gpi.
In order to release the first stage of the PoC, SWIFT will be working on R3’s blockchain platform Corda. WIth the PoC, companies using Corda will be able to authorize payments from their banks using gpi Link, settle gpi payments using their bank and receive credit confirmations on their trade platforms.
Ran Neuner is also the co-founder and CEO of Onchain Capital and hosts the Crypto Trader program on CNBC Africa. He talked with the SWIFT executive about the company and their plans for the future.
About SWIFT using blockchain technology, O’Connor answered:
“So, we are selectively looking at the use of DLT. The reason that we’re doing this is because our owners are also interested in that as a trend. So, they’re looking at how do they leverage DLT for certain business problems. We don’t think that DLT or blockchain is the answer to every problem. What we like to do first is to look at the problem and then apply the right technology as the solution.”
The firm has been working in Singapore with blockchain technology for proxy voting. Moreover, they have also worked with the Australian Stock Exchange that is starting to work on its own DLT settlement system.
As O’Connor explained, there is work that is going on from a market infrastructure perspective by stakeholders that are looking at it. As she mentioned, they are very open to working with DLT platforms that are looking at implementing new solutions. She ended by saying that their goal is to connect up potentially these different infrastructures.