SWIFT Partners With Majors Banks To Test Blockchain Voting
March 7, 2019 4:42 pm
Communication giant SWIFT has partnered with the Singapore Exchange and four banks for testing a medium for e-voting based blockchain technology, revealed the firm on Tuesday.
The participants in this joint effort to examine if distributed ledger technology (DLT) can make shareholder voting convenient and efficient, including Deutsche Bank, DBS, HSBC and Standard Chartered Bank, and also securities software provider SLIB.
The shareholder votings on corporate decisions are quite “time-consuming and resource intensive,” SWIFT explains.
Further, while explaining the benefits of DLT, the firm said:
“Proxy voting, in particular, frequently results in error-prone and complex manual processes, which the industry can avoid by fostering greater transparency and automation.”
The testing involves issuers and a central securities depository (CSD), with data managed on an authorized private blockchain. The partners will also check the viability of hybrid solutions that integrate financial messaging standard ISO 20022 with DLT to improve interoperability and “avoid market fragmentation,” as mentioned in the announcement.
Deutsche Bank, HSBC and Standard Chartered Bank will play as participants in this initiative, whereas DBS and SGX will be both participants and issuers.
SWIFT will host the trial in its sandbox testing environment, and as for partners, they will use the SWIFT network and the current SWIFT infrastructure and interface stack for other purposes.
The group head of Securities and Fiduciary Services at DBS, Soh Ee Fong said:
“An innovative and seamless e-Voting platform in this industry is long overdue and DBS is pleased to join SWIFT in the PoC as both issuers and participants … With this solution, shareholders meetings will not be the same again.”