SWIFT has signed a memorandum of agreement with seven central securities depositories to look into how blockchain can be used for post-trade processes, such as proxy voting
SWIFT, or the Society for Worldwide Interbank Financial Telecommunications, has signed an MoU with seven central securities depositaries (CSDs) to explore how distributed ledger technology (DLT) can be used to improve post-trade processes such as corporate actions, proxy voting and trade processing.
The exchange will work with fellow central securities depositories Caja de Valores, Depósito Central de Valores, Nasdaq Market Technology AB, National Settlement Depository, SIX Securities Services and Strate Ltd to collaborate on the project, with other new members to join in the coming weeks.
In addition to designing new DLT-based products, the group, known as the CSD Working Group on DLT (distributed ledger technology), will also explore the feasibility of using existing standards such as as ISO 20022 to support any DLT initiatives.
The MOU seems targeted toward the exploration of the use of DLT for e-Governance processes in corporate contexts, including voting and proxy voting. Additionally, the entities involved in the MOU will work together to build new kinds of blockchain-based products that can be used within the banking and financial industries.
Through the creation of these new technologies, the group also hopes to establish a set of standards that can be adopted throughout the financial industry as well as the regulatory sector.
Swift’s head of standards Stephen Lindsay, told CoinDesk the agreement was more exploratory in nature.
Finding a way to keep the ISO messagung standards relevant in a DLT-based post trade world is a priority for Swift, said its head of standards Stephen Lindsay. “To ensure interoperability and smooth migration, it is crucial that new technologies support existing common standards such as ISO 20022. The promise of technology on paper is great but it is currently missing a key component around standardisation.”