SWIFT banks on blockchain to improve data accuracy

Swift blockchain

The Society for Worldwide Interbank Financial Telecommunication (SWIFT), a messaging network used to make cross-border payments, has joined with fintech company Symbiont to pilot a blockchain project.

The partnership is aimed at providing more accurate data for financial firms through blockchain technology. The pilot project could help members of the SWIFT platform distribute data almost real-time to global custody clients.

“Through Assembly, Symbiont’s proprietary technology platform and smart contracts will be used “to create a network effect that leverages the 11,000+ institutions connected to SWIFT globally,” according to the press release.

Vanguard, Citigroup, American Century Investments, and Northern Trust are part of the pilot project.

“By bringing Symbiont’s Assembly and smart contracts together with SWIFT’s extensive network, we’re able to automatically harmonize data from multiple sources of a corporate action event. This can lead to significant efficiencies,” Tom Zschach, chief innovation officer at SWIFT, said.

If the pilot is successful, SWIFT will integrate Symbiont’s system into its network and extend it to cover more corporate events It would also consider making it available to the wider SWIFT community.

Symbiont is a leading blockchain technology service provider that aims to solve inefficiencies in the financial marketplace. “Via our smart contract technology, we are enabling market participants to automate the reconciliation process,” Mark Smith, co-founder and chief executive officer of Symbiont said.

FAQs

Does Swift use blockchain?

Yes, Swift, the programming language developed by Apple, can be used in blockchain development. There are resources and tutorials available for building blockchain applications in Swift. Developers can leverage Swift to create blockchain apps for iOS using frameworks like UIKit and Swift language [1]. There are also courses dedicated to teaching blockchain programming in iOS using Swift, covering the basics and details related to blockchain technology.

Why crypto is better than Swift?

Cryptocurrencies are often considered superior to traditional financial systems like SWIFT for several reasons:
Speed and Cost Efficiency: Bitcoin transactions, for example, are generally faster and cheaper compared to traditional SWIFT transactions, which may involve multiple intermediaries and higher fees.
Decentralization: Blockchain, the underlying technology of cryptocurrencies, operates on a decentralized network. This eliminates the need for a central authority, reducing the risk of manipulation or control over the system.
Security and Transparency: The distributed ledger technology of blockchain ensures transparency and security. Each transaction is recorded on a public ledger, providing an immutable and transparent record of all transactions.

What is the role of blockchain technology in the financial system?

What is the Role of Blockchain Technology in the Financial System?
Blockchain technology plays a crucial role in transforming the financial system by offering various benefits such as enhanced security, speed, transparency, and efficiency. Here are key aspects of its role:
Enhanced Security: Blockchain uses cryptographic techniques to secure transactions, making them resistant to fraud and unauthorized alterations. The decentralized nature of the technology reduces the risk of a single point of failure.
Transparency: The distributed ledger in blockchain ensures transparency by recording and verifying transactions across a network of computers. This transparency reduces the potential for discrepancies and enhances trust among participants.
Efficiency: Blockchain can streamline and automate complex financial processes, reducing the need for intermediaries and manual interventions. This efficiency can lead to faster transaction settlements and lower operational costs.

How can blockchain benefit banks?

Blockchain technology offers several benefits to the banking sector, enhancing efficiency, security, and transparency. Here are the key advantages:
Cost Reduction: Blockchain can significantly reduce operational costs for banks by minimizing the need for intermediaries and streamlining processes, leading to overall cost savings in transactions and settlements.
Faster Transactions: Blockchain enables faster and real-time settlement of transactions, eliminating the delays associated with traditional banking processes. This speed can improve overall transactional efficiency for banks.
Improved Security: The decentralized and cryptographic nature of blockchain enhances security, protecting sensitive financial data from unauthorized access and fraud. This ensures a higher level of data integrity and confidentiality.

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