SWIFT, the world’s leading financial messaging network, has teamed up with HSBC as well as a slew of other banking institutions and the Singapore Exchange (SGX) in order to test a Blockchain-based system of electronic voting. A PoC (proof-of-concept), which will be conducted in the Asia Pacific region, will help determine whether Blockchain is a viable alternative to the paper-based process.
SWIFT announces a proof-of-concept on #eVoting using distributed ledger technology #DLT. SWIFT will conduct the PoC in Asia w/leading securities software provider SLIB & the Singapore Exchange (#SGX), along with @DeutscheBank, @dbsbank, @HSBC & @StanChart.https://t.co/noDxW86jSZ— SWIFT (@swiftcommunity) March 6, 2019
The pain points of proxy voting
Apart from increasing the efficiency of shareholder voting, Blockchain will also increase its transparency. The paper-voting process is prone to many errors. On top of that, SWIFT’s Lisa O’Connor claims that the disruptive technology will allow more shareholders to express their rights, thus increasing the level of participation.
HSBC’s Tony Lewis claims that the company has the potential to revolutionize the security services in Singapore. All the aforementioned partners will use the SWIFT network to test the applicability of the DLT solution.
SWIFT’s bet on Blockchain
The financial messaging service, which connects the world’s leading banks, has been already moving its Blockchain pieces for quite a while on the cusp of a big game. SWIFT announced its partnership with Blockchain startup R3 on Jan. 30.
Ripple, one of the biggest cryptocurrency companies that focuses on cross-border payments, poses a major threat to SWIFT. However, as reported by U.Today, Ripple CEO Brad Garlinghouse earlier claimed that a partnership with SWIFT could be already in the pipeline.