SWIFT to conduct e-Voting using Blockchain technology along with SLIB and the Singapore Exchange (SGX)

SWIFT to conduct e-Voting using Blockchain technology along with SLIB and the Singapore Exchange (SGX)

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) plans to use distributed ledger technology (blockchain technology) to conduct e-Voting for shareholder as a proof-of-concept with SGX (Singapore Exchange) and securities software provider SLIB. The announcement was made in the official press release on the swift website.

Founed in 1973, SWIFT is an organisation establishing common processes and standards for international banking transactions.

As a part of SWIFT's PoC (Proof of Concept) with distributed ledger technlogoy, in test environment, Deutsche Bank, HSBC and Standard Chartered Bank will join as participants. DBS and SGX will also join as both participants and as issuers. All participants will use SWIFT network and their existing SWIFT infrastructure and interfaces to access, test and validate the distributed ledger technlogy (DLT).

Executive Opinion

Managing Director, Securities, Treasury & Standards, Asia Pacific at SWIFT, Lisa O’Connor, said, "The expression of shareholders’ rights is often limited today by non-transparent, complex and inefficient paper-based processes. The emergence of blockchain technology is a new opportunity to look at improving these processes. It is also an opportunity for SWIFT to offer flexibility in the adoption of this new technology through the re-use of ISO 20022 based solutions together with a high level of security and resilience that our industry requires."

Details SWIFT's blockchain PoC

It is understood that the existing inefficient management of shareholder meetings and the associated voting process is complex, time consuming , resource intensive and is less transparent. The complexity is further increased by proxy voting and errors. The SWIFT's PoC with distributed ledger technlogoy (blockchain) will help in simplifing overall e-voting process and how it can bring greater transparency with increased automation to the overall process.

The proof of concept will commission permissioned blockchain that will be utilized among issuers and a Central Securities Depository (CSD) to store and manage e-voting data. The test will also try to confirm the use of ISO 20022 as the foundation for standardising Application Programming Interfaces (APIs) exposing DLT node contents to parties with direct access to the ledger.

The SWIFT's capacity to host third party applications in their sandbox environment along with security and their interfaces will be also tested during the PoC.

The PoC will run during the first half of 2019.


Note: We at TechSutram take our ethics very seriously. More information about it can be found here.
Mandar Pise Opinions expressed by techsutram contributors are their own. More details

Mandar is a seasoned software professional for more than a decade. He is Cloud, AI, IoT, Blockchain and Fintech enthusiast. He writes to benefit others from his experiences. His overall goal is to help people learn about the Cloud, AI, IoT, Blockchain and Fintech and the effects they will have economically and socially in the future.

No comments:

Post a Comment

    Your valuable comments are welcome. (Moderated)