Financial infrastructure is on the brink of being disrupted by new technologies. Mainly blockchain technology is one of the contenders to disrupt the financial sector as we know it. Swift, one of the world’s leading money transfer protocols, will make sure they are not replaced by distributed ledgers. A very bold statement that will require a lot more than just strong words.
The vast majority of international interbank messages and transfers takes place on the Swift network. Even though the group operating this protocol is keen on innovation, they do not see blockchain technology as a competitor. While they admit the technology has its merits, both ecosystems will co-exist for the foreseeable future.
Blockchain Technology Is No Threat To Swift
In fact, Swift recently unveiled their proof of concept to manage the lifecycle of a bond trade. Rather than using distributed ledger technology, they leverage the protocols “own unique set of capabilities”. Moreover, the Swift project is in a prime position to leverage their network of connections.
Swift Labs head of RD Damine Vanderkerken told the media:
“There is a strong push from GPI banks to see how DLTs can be applied to improve correspondent banking. We will specifically be