On Tuesday, SWIFT made a public announcement, where for the first time, the group disclosed some of the projects it had been working on.
According to the group, it is eager to gain access and perform exploration of digital assets and the cryptocurrency world. For this purpose, the organization has formed a partnership with a major fintech company.
Symbiont Collaborates with the SWIFT
The SWIFT officials have disclosed that they will be collaborating with Symbiont, a major fintech company, to gather more knowledge in the digital assets sector.
By working with Symbiont, they will be able to gather more accurate information and data from financial firms. The main attraction for them collaborating with Symbiont was to gather information using blockchain technology.
Multiple financial entities within the SWIFT group are eager to work together and collaborate with Symbiont. These companies include Northern Trust, American Century Investments, Citigroup, and Vanguard.
Initially, they will be working towards the smooth launch of the pilot phase. During the pilot phase, the data would be distributed among the global custody clients in a real-time environment.
The pilot would also see the usage of smart contracts. They will be used through the proprietary technology platform developed by Symbiont, which is known as Assembly.
Through the technology, more than 11,000 institutions currently connected with SWIFT all over the world will be able to leverage the pilot. Going forward, all the institutions currently under the SWIFT umbrella will be able to leverage the technology in real time.
Partnership with Vanguard
It was back in 2017 when Symbiont announced a partnership with Vanguard. The purpose behind the collaboration was to introduce improvisations to the distribution of the price index data using blockchain technology.
Using the technology and data collection expertise from Symbiont’s Assembly, an extensive network of data will be formed.
The data will be gathered from all the sources connected with SWIFT and it will be harmonized automatically, and would also use smart contracts.
Using the smart contracts, the automation would organize the data and then cross-very it with all the collected data and sources. The automation will check the data itself and flag any kinds of inconsistencies, contradictions, or discrepancies among the custodians.
The rise of CDBCs is the Main Driver
SWIFT has decided to change its strategy after recognizing the need for blockchain technology on board. All of this happened because countries from all over the world are now adopting CBDCs.
With the growing adoption of CBDCs, it has become very important that more knowledge is gathered by institutions for the smooth implementation of CBDCs.