SWIFT Teams Up With Major Banks, SGX to Trial Blockchain Voting

Monetary messaging giant SWIFT has teamed up with the Singapore Exchange and four banks to demo a system for e-voting based on blockchain tech, the agency stated Tuesday.

Signing up for the effort to see if dispersed ledger technologies (DLT) can assist make shareholder voting additional basic and economical are Deutsche Financial institution, DBS, HSBC and Normal Chartered Financial institution, as nicely as securities computer software company SLIB.

As in several parts of finance, shareholder voting on corporate conclusions is designed “cumbersome” by the existing “time-consuming and resource intensive” paper-based approach, SWIFT defined.

Outlining why DLT has the probable to assist remedy the difficulty, the agency stated:

“Proxy voting, in unique, usually final results in mistake-vulnerable and complicated guide procedures, which the sector can stay clear of by fostering better transparency and automation.”

The evidence-of-idea (PoC) demo sets out to check a DLT voting alternative involving issuers and a central securities depository (CSD), with information managed more than a permissioned non-public blockchain. The companions will also look at the viability of hybrid methods that merge monetary messaging common ISO 20022 with DLT to improve interoperability and “avoid market fragmentation,” the announcement states.

Deutsche Financial institution, HSBC and Normal Chartered Financial institution will act as as participants for the effort, when DBS and SGX will act as both equally participants and issuers. It is not very clear from the announcement which CSD will be assisting the PoC.

SWIFT will host the demo in its sandbox testing natural environment, when the companions will use the SWIFT community and their current SWIFT infrastructure and interfaces as they check the systems.

As more component of the demo will look at SWIFT’s ability to host programs in its sandbox and to reuse its security and interface stack for other uses.

Soh Ee Fong, group head of Securities and Fiduciary Expert services at DBS, stated:

“An modern and seamless e-Voting system in this sector is very long overdue and DBS is pleased to be a part of SWIFT in the PoC as both equally issuer and participant. … With this alternative, shareholder meetings will not be the same once more.”

Back again in 2017, SWIFT assisted a consortium backed by a group of CSDs on plans to build a very similar dispersed ledger proxy voting procedure. That undertaking also aimed to adhere to the ISO 20022 common in an effort to make sure that the voting procedure could be utilized throughout a large selection of companies.

SWIFT graphic by way of Shutterstock