22 additional global banks have joined the Swift blockchain proof of concept (PoC) to help validate whether the technology can help banks reconcile their international nostro accounts in real time.
Last week it was announced that 22 global banks had joined the Swift blockchain proof of concept as part of the global payments innovation service for cross-border payments.
The banks will act as a validation group to further test and validate the PoC’s blockchain application, which has been under development by SWIFT and founding banks ANZ, BNP Paribas, BNY Mellon, DBS Bank, RBC Royal Bank and Wells Fargo since early 2017.
The PoC aims to help banks overcome challenges in monitoring and managing their international foreign currency accounts, which are crucial to the facilitation of cross-border payments. Currently, banks do not have the capacity to monitor their account positions in real time due to lack of intraday reporting coverage. The PoC application will use a private permissioned blockchain and employ strong data controls. User privileges and data access will be strictly governed as well.
Wim Raymaekers, Head of Banking Markets at Swift, commented,
“This new group of banks allows us to greatly extend the scope of multi-lateral testing of the blockchain application and thus add considerable weight to the findings. We warmly welcome the new banks and look forward to their insights.”
According to Damien Vanderveken, Head of R&D, SWIFTLab and UX at SWIFT, the business benefits from the PoC are clear.
“If banks could manage their nostro account liquidity in real time, it would allow them to accurately gauge how much money is required in each account at any given point, ultimately enabling them to free up significant funds for other investments,” he stated.
New banking members include ABN AMRO Bank, ABSA Bank, BBVA, Banco Santander, China Construction Bank, China Minsheng Banking, Commerzbank, Deutsche Bank, Erste Group Bank, FirstRand Bank, Intesa Sanpaolo, JPMorgan Chase Bank, Lloyds Bank, Mashreq Bank, Nedbank, Rabobank, Société Générale, Standard Bank of South Africa, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, UniCredit and Westpac Banking Corporation.
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