Swift Interbank Cooperative announced the successful completion of a pilot project on corporate actions based on blockchain.
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The results of this project were described as a convincing solution. This means that the company’s representatives recognized the blockchain as a technology, the effectiveness of which is at an acceptable level.
Six participants from the securities industry took part in the pilot project, the most famous of which are American Century Investments, Citi, and Northern Trust. The testing was aimed at exploring ways to reduce the costs associated with the implementation of the process of informing investors about corporate events of primary importance. Such information is traditionally expensive.
Based on the results of the analysis of the results of the pilot project, it was concluded that the experimental technology is useful for the industry. In the case of its application, a clear and consistent view of corporate actions in the entire ecosystem of investors is provided. Also, this technology provides prompt notification of certain changes or updates.
Swift claims that the blockchain-based system has the potential in terms of the possibility of reducing the amount of manual labor. Another advantage of the technology is to reduce the number of errors that are allowed when processing corporate actions. Blockchain also contributes to ensuring operational efficiency for market participants.
Swift plans to continue testing the technology shortly and involve the wider community in this process. The next stage of studying the blockchain from the point of view of its practical use is aimed at assessing compliance with the requirements for a fully viable and scalable offer. Additional functions and use cases will be studied separately.
Tom Zschach, Director of Innovation at Swift, says that the power of blockchain was used in the experiments to provide all market participants with a single and accurate idea of a corporate event.
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