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XLM · 27w

Swift and stellar

SWIFT is increasingly acknowledging the growing importance of DLTs in the finance industry. This may explain the SWIFT GPI, which is basically an attempt to forestall the growth of competitors like ripple in the banking industry. However, even SWIFT GPI is still a messaging system and doesn’t solve the problem of liquidity in instant cross-border transactions.

This means that SWIFT is still far behind in this market, relative to its emerging competitors. This is easy to deduce going by Marcus Treacher’s tweet about SWIFT’s proclamations during SIBOS 2018.  From the tweet, SWIFT was essentially admitting that they don’t have the tech that its emerging competitors have. But what if SWIFT pulls a fast one and partners with stellar, as a liquidity solution to the SWIFT GPI? Sounds improbable? Well, it would be naïve to think that SWIFT will just sit back and watch its market dominance disappear.

Back in 2016, SWIFT published a position paper titled, delivering an industry-standard platform through community collaboration. One of the things that the paper touched on are the requirements needed for DLTs to gain wide adoption in the finance industry. Here is what SWIFT wrote about these requirements at the time.

“As part of our technology assessment, we have identified the following key requirements that DLTs need to attain in order to be widely adopted in the financial industry: Strong governance – Governance models to clearly define the roles and responsibilities of the various parties as well as the business and technical operating rules; Data Controls – Controlled data access and availability to preserve data confidentiality; • Compliance with regulatory requirements – The ability to comply with regulatory requirements (e.g. Sanctions, KYC, etc.); Standardisation – Standardisation at all levels to guarantee straight-through processing (STP), interoperability and backward compatibility; Identity framework – The ...
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