The global payment relay network SWIFT has announced it will use Hyperledger as a basis for simplifying international transactions.
In a trial together with Australia and New Zealand Banking Group, BNP Paribas, BNY Mellon and others, SWIFT will seek to use the Blockchain to update its practices in an ever-evolving cross-border payments market.
In its promotional literature, SWIFT, in line with many institutions in the banking sector, makes reference to the so-called ‘distributed ledger technology’ (DLT).
Damien Vanderveken, Head of R&D, SWIFTLab and UX at SWIFT, commented in a press release Tuesday:
“We are very excited to start the DLT proof of concept with these participating banks. This is a great step forward and another example of how SWIFT and the industry can work together to solve concrete business challenges with an innovative and collaborative mindset.”
A long-standing board member of Hyperledger, SWIFT has been considering its move into disruptive fintech solutions for several years.
Suggestions have been made that unless it adapts to the market, the network could in future become “extinct.”
Meanwhile, the past year has seen problems of a different kind put SWIFT in the headlines. High-profile hacks of client banks, security flaws and most recently claims the CIA spied on its transactions have further weakened the profile of its legacy technology.