The blockchain industry has seen many opponents and proponents. Surprisingly enough, Swift is quite keen on DLT as we speak. While they are not entirely convinced of its potential, a recent proof-of-concept yielded positive results. These DLT apps can deliver business functionalities and data richness. In the ideal world, they may even support real-time liquidity monitoring. An exciting future lies ahead, that much is certain.
It is quite strange to hear Swift provide positive comments on blockchain technology. Although we know the institution works on a DLT proof-of-concept, no results were made public. That s until recently, as the group confirmed their test was successful. A total of six member banks participated in this trial as well. Interoperability between financial institutions is an absolute must right now. Distributed ledger technology may be the much-needed catalyst in this regard.
Swift is Pleased With its DLT Research so far
Additionally, several dozen banks are working in Swift’s DLT sandbox. It is evident the focus on blockchain is growing as we speak. Most projects are still in the early stages of development, though. These ventures require a lot of research before they can even be considered worth exploring. Not every DLT venture will succeed either, especially not in the financial sector.
Although this proof-of-concept is a success, Swift remains cautious. That is the expected attitude, after all. There certainly are benefits to using blockchain technology in the financial sector. However, there are also challenges which need to be addressed. It will take some time until the global financial industry adheres to DLT standards. When that happens, the future may never be the same again.
Some of the key challenges include developing unique value propositions. Integration with legacy back office applications is also a major problem right now. Plus, a DLT solution needs to co-exist with existing processes. Neither of these challenges can be solved overnight by any means. However, progress is being made as we speak. Swift will continue to focus some its attention on this technology for the foreseeable future.
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