Around a dozen of the world’s largest banks have shown interest in the new system.
SWIFT – the interbank system for transferring financial information and making payments-has launched its own payment blockchain system.
The company is implementing a blockchain system to solve problems with payment latency due to banking errors.
SWIFT found that almost 10% of payments sent through its own platform recorded such delays.
“We know that there are some payments that are poorly formatted or lack any information. Instead of correcting it later in the chain and delaying payment, we try to provide for as many of these issues as possible (with pre-verification) to make payments it could be processed faster, “said Luc Meurant, marketing director of SWIFT.
14 large banks, including Bank of China, JPMorgan and Deutsche Bank, will participate in product testing. The transition to blockchain technology means that Swift will be able to more effectively compete with RippleNet, but the technologies used by these companies differ significantly.
The SWIFT project is reminiscent of the JPMorgan Chase (IIN) interbank information network, a system based on the Etherium-based Quorum blockchain platform. IIN test launch took place almost a month ago. It is expected that the new interbank network JPMorgan will have 300 thousand transactions per day.
For SWIFT, which now serves 14.5 million cross-border transfers per day, these expectations may be higher. If its blockchain project has the same bandwidth as the current system, it will be much more than the IIN has to offer.