22 additional banks will help test the new SWIFT gpi Blockchain proof of concept application. What are the potential benefits of this new technology?
7 July, AtoZForex – Blockchain system is gradually getting acquired by the global financial system participants. In the latest developments, 22 additional global banks have joined the SWIFT gpi Blockchain proof of concept (PoC).
22 global banks to test SWIFT gpi Blockchain proof of concept application
Specifically. the proof of concept (PoC) is a part of SWIFT gpi (global payments innovation) service. This is the new standard for cross-border payments. The latest banks to join the SWIFT gpi blockchain proof of concept are:
ABN AMRO Bank, ABSA Bank, Banco Bilbao Vizcaya Argentaria, 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, Santander, Société Générale, Standard Bank of South Africa, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, UniCredit and Westpac Banking Corporation.
As the first step of joining the SWIFT gpi Blockchain proof of concept, banks will test the application. In fact, the SWIFT gpi Blockchain proof of concept is still in the development stage by SWIFT. The group of other six founding banks has launched the PoC this year. Additionally, the newcomer banks will be acting independently from the founding ones.
The newcomer banks will be acting independently from the founding ones. The 22 banks will act as a validation committee to further test the SWIFT gpi Blockchain proof of concept application. They will need to evaluate the performance of the new technology.
SWIFT gpi Blockchain proof of concept application
The Head of Banking Markets and SWIFT gpi at SWIFT, Wim Raymaekers, has 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.”
The PoC was launched back in 2017 by six founding banks: Australia and New Zealand Banking Group, BNP Paribas, BNY Mellon, DBS Bank, RBC Royal Bank and Wells Fargo. The application aims to help banks manage the significant issues in monitoring and administering their nostro accounts. These challenges are very important to the facilitation of cross-border payments.
In addition, the PoC looks into the need for banks to receive real-time liquidity data to manage funds through in a proper fashion. The essentials of PoC were determined by the rulebook of SWIFT. The creation of PoC stands out as a development in the intraday liquidity standard by SWIFT.
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