SWIFT To Use R3 Corda For Establishing gpi Gateway For Payment
In an effort to establish a new standard in global payment norm, SWIFT disclosed today the piloting of a blockchain-based proof of concept (PoC) gpi Link. And according to the official press release, gpi Link connects “gpi members to multiple trading platforms allowing gpi payment initiation, end-to-end payment tracking, payer authentication and credit confirmation.”
Furthermore, the gateway allows “continuous payment flow monitoring and control” to ensure worldwide connectivity and scalability. The PoC is based on the Corda blockchain platform of R3 that guarantees speed and greater transparency in GPI payments. The pronouncement was first made by Gottfried Leibbrandt, CEO of SWIFT, in a symposium at the Paris Fintech Forum.
Blockchain companies, such as R3 and Ripple, strive to eliminate SWIFT with extremely efficient and safe blockchain solutions for the banking sector. In addition to Leibbrandt, Brad Garlinghouse, CEO of Ripple, a nitpicker of SWIFT technology, was also a member of the panel.
Luc Meurant, SWIFT’s chief marketing officer, elaborated on the development as follows “All trade platforms require tight linkages with trusted, fast and secure cross-border payments mechanisms such as gpi. While DLT-enabled trade is taking off, there is still little appetite for settlement in crypto-currencies and a pressing need for fast and safe settlement in fiat currencies.”
Meurant further said
“With gpi Link, banks will be able to provide rapid, transparent settlement services to e-commerce and trading platforms, opening up whole new ecosystems to the speed, security, ubiquity and transparency of gpi and enabling them to grow and prosper in the new digital economy. Given the adoption of the Corda platform by trade ecosystems, it was a natural choice to run this proof of concept with R3.”
The PoC confirms that, companies utilizing the R3 platform can endorse payments received from their banks through gpi Link and payments are cleared by their banks. After that companies will receive confirmation regarding the approved payment via gpi Link.
The embracing of R3 blockchain technology by SWIFT is the outcome of the company’s interest towards the decade-old technology that was developed in recent years as it has partaken in several blockchain-based trial programs. R3 officially unveiled its much awaited Corda platform earlier this month and now has more than 300 associates across the world, from both the public and private sectors, involved in the development activities.
The company has also entered into a partnership with SBI Holdings to support the preparation and presentation of the Corda license throughout Asia.
David Rutter, CEO of R3 said “Following the recent launch of our Corda Settler, allowing for the payment of obligations raised on the Corda platform, it was a logical extension to plug into SWIFT gpi. SWIFT gpi has rapidly become the new standard to settle payments right across the world. All the blockchain applications running on Corda will thus benefit from the fast, secure and transparent settlement provided through the SWIFT gpi banks.”