SWIFT Set to Link Its Global Payments Innovation (GPI) Framework with R3’s Corda

An official statement indicates that SWIFT launched a Proof-of-Concept (PoC) to open up the possibility of interlinking emerging technologies with the traditional global payments ecosystem. Notably, the PoC defines a new gateway that will provide a seamless link among multiple trade platforms. Dubbed GPI Link, the gateway will only be available to members of the Global Payments Innovation (GPI) platform.

GPI Link to expedite transaction speed and transaction volumes

In particular, GPI brings together like-minded players in the global payments industry with a view on adoption of emerging technologies. Notably, the platform provides the standards of business in cross-border payments. At the core of its mission is the need to integrate global platforms to ensure interoperability.

Interestingly, the GPI Link is a joint venture between Belgium-based SWIFT and R3. In particular, the PoC for the GPI Link will work on R3’s Corda. This is a blockchain platform that enables ubiquity, speed and certainty. Notably, users of the GPI platform on Corda will successfully use the GPI Link to authorise payments from their banks. Further, the link will enable the users to settle payments as well as receive credit confirmations on trade platforms linked to GPI.

This is a classic case of traditional finance finding the middle ground with emerging technologies. Further, it represents an accommodative attitude on the part of traditional finance. According to SWIFT, users have the capacity to move over $300 billion within minutes. Further, it is possible to credit over 50% of SWIFT GPI payments to the recipients in under 30 minutes. 

SWIFT ignores Ripple

Interestingly, the need to integrate distributed ledger technology (DLT) within SWIFT’s business plan is more a matter of necessity than strategy. According to the company’s Chief Marketing Officer, Luc Meurant, the technology is taking off rapidly.

Despite the spectacular tumble of the cryptocurrency market, there is still explicit appetite for digital assets. However, players are inclining more and more onto the fiat currency alternative, which provides growth opportunity for SIWIFT.

However, the highlight of the developments is the fact that SWIFT ignored Ripple. Interestingly, Ripple is a fierce competitor to R3 and they mostly compete for clients. Notably Ripple launched a campaign targeting to surpass SWIFT as the channel of choice for inter-bank cash transfer. Nevertheless, Brad Garlinghouse, Ripple Chief Executive, told CNBC that they are open for discussions with SWIFT.

Further, Garlinghouse said that SWIFT would do better if it adopted decentralised technology to facilitate cash transfers.