To reduce its production costs and improve the efficiency of its services, SWIFT, one of the leaders in payment systems, is turning to blockchain. Starting this month, the company will experiment with a system developed by Symbiont to optimize its corporate actions solutions.
SWIFT will experiment with blockchain with Symbiont
SWIFTone of the major players in the international monetary system, will launch blockchain experiments. For this, the company hired the services of Symbiont, whose solutions are aimed at professionals. This company is already known for collaborate with the Nasdaq or Vanguard notably.
In addition to its famous payment system, which made headlines at the beginning of the year by excluding Russia, SWIFT also stands out for its solutions in terms of business-to-business communication systems.
The communications in question concern, for example, the sharing of strategic information on companies listed on the stock exchange, such as the payment of dividends or mergers. All these important news must be shared quickly with all the actors concerned and it is to rationalize these operations that SWIFT turns to blockchain :
“The automation of these communications has improved in recent years, but it still relies heavily on manual processes that create both additional cost and risk for market participants. »
In total, these are the 11,000 institutions connected to SWIFT around the world who will be able to benefit from the improvements brought about by blockchain technologies, if the experimentation is successful.
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Improve the efficiency of corporate actions
It is the different types of corporate actions that will be most positively impacted by this new system. SWIFT believes that 30% of the cost of these operations is to be attributed to manual activities. In addition to improving the efficiency of their processing, the solutions provided by Symbiont will allow a gain in reliability and a reduction in these costs.
This was pointed out in particular by Tom Zschach, Chief Innovation Officer at SWIFT:
“If the solution proves effective, intermediaries will have to respond to fewer client queries for corporate actions data. It also means that global custodians and asset managers could reduce the number of people who spend their time manually processing corporate actions data. »
For now, a pilot group is developing this experimental system to start testing this month. If financial institutions are sometimes hesitant vis-à-vis cryptocurrencies, we find that the resulting technologies are, conversely, of real interest.
Earlier this year, Société Générale, through its internal startup Forge, made headlines by partnering with Metaco to develop its blockchain solutions. Shortly before, the bank BNP Paribas had announced that it was using Onyx from JP Morgan to tokenize bonds.
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