The financial messaging services are about to get a novel face and recognition with the help of global technology aka blockchain. Swift the biggest name in this field is going to make collaboration with blockchain start-up R3. Swift is known for its presence in almost all the world’s biggest banks will work together with R3 on a proof-of-concept which will help in initiating the payment to a trading platform which is later sent towards Global Payments Innovation (GPI).
The official announcement of Swift chief executive, Gottfried Leibbrandt unveiled that they will be linking R3’s platform within their novel innovative payments standards framework Global Payments Innovation. R3 gained huge fame and name in the blockchain industry in a very short span. It was founded in 2014 with an aim of filling in the gap between the banking industry and this emerging technology.
Firms across the world that are using R3’s Corda network are able to approve, validate and settle payments through a gateway called GPI Link. The global technology assistance will help in increasing the remittance process between banks for end-to-end tracking of the entire payment or transaction in a real-time.
According to CNBC, Swift’s platform is undoubtedly a leader in cross-border remittance which moves approximately $200 billion across the globe by more than 11,000 financial institutions every single day. However, it does have some discrepancies also as it is expensive and might take up a few days for payments to be processed because of its centralized nature. But the blockchain based model work on decentralization.
Immense Popularity Of Swift
The model of Swift has already hit an all-time high average lately in 2018, which confirms that 31.31 million messages were directed on a daily bases. The mass adoption of this model accounts for about 55 percent of cross-border remittance instruction on this sole model as mentioned by Investor Daily. It is for sure that the combination of global technology with Swift is going to bring in massive changes in the finance sector.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]