In an attempt to establish a new norm in the cross-border payment standards, interbank payment and messaging network SWIFT today announced the trial of a blockchain-based proof-of-concept (PoC) gpi Link.
According to the official statement, gpi Link will connect “gpi members to multiple trade platforms thereby enabling gpi payment initiation, end-to-end payment tracking, payer authentication, and credit confirmation.” Further, the gateway will enable “continuous monitoring and control of payment flow” ensuring global integration and interoperability.
The PoC is based on R3’s blockchain platform Corda which ensures speed and transparency to gpi payments.
The revelation about this was first done by SWIFT’s CEO Gottfried Leibbrandt earlier today during a panel discussion at the Paris Fintech Forum.
Many blockchain firms including R3 and Ripple are aiming to replace SWIFT from the banking system with much efficient and secure blockchain-based solutions. Along with Leibbrandt, Ripple’s CEO Brad Garlinghouse, a critic of SWIFT’s technology, was also a part of the panel.
Commenting on this development, Luc Meurant, SWIFT’s chief marketing officer, said: “All trade platforms require tight linkages with trusted, fast and secure cross-border payments mechanisms such as gpi. While DLT-enabled trade is taking off, there is still little appetite for settlement in crypto-currencies and a pressing need for fast and safe settlement in fiat currencies.”
“With gpi Link, banks will be able to provide rapid, transparent settlement services to e-commerce and trading platforms, opening up whole new ecosystems to the speed, security, ubiquity and transparency of gpi and enabling them to grow and prosper in the new digital economy. Given the adoption of the Corda platform by trade ecosystems, it was a natural choice to run this proof of concept with R3.”
Under the PoC, corporates using R3’s platform will be able to authorize payments from their banks via gpi Link, and the payments will be settled by their banks, the confirmation of which they will receive via gpi Link.
Blockchain – the Future of Banking
SWIFT’s adoption of R3’s blockchain technology is the result of the company’s inclination towards the decade-old technology, which developed over the past few years as it participated in many blockchain-based pilot projects.
Earlier this month, R3 officially launched its much anticipated Corda platform and has now over 300 partners globally from both public and private sector involving in the development process. It has also partnered with SBI Holdings to form a joint venture to support the provision and introduction of the Corda license across Asia.
“Following the recent launch of our Corda Settler, allowing for the payment of obligations raised on the Corda platform, it was a logical extension to plug into SWIFT gpi. SWIFT gpi has rapidly become the new standard to settle payments right across the world. All the blockchain applications running on Corda will thus benefit from the fast, secure and transparent settlement provided through the SWIFT gpi banks,” said David E. Rutter, CEO of R3.