Global interbank messaging giant SWIFT reveals that it will allow blockchain firms to employ its Global Payments Innovation (GPI) platform for near real-time payments, as per a report published late last week.
SWIFT stated in the report that after a successful proof-of-concept with R3’s Corda platform, it would “soon be enabling gpi payments on DLT [distributed ledger technology]-based trade platforms.”
The GPI payments would resolve the “payment challenges” faced by DLT platforms. The firm further explained that said payments would be initiated within trade workflows and be automatically sent on to the banking system. GPI was launched in early 2017, as a set of business rules encoded on top of the firm’s existing infrastructure, so as to increase speed transparency and the traceability of transactions.
The firm states in the report that 55 percent of SWIFT’s cross-border payments are now undertaken by GPI, amounting to a flow worth over $40 trillion. The report states
“Half of them are reaching end beneficiary customers within minutes, and practically all within 24 hours,”
The report further predicted that all its cross-border SWIFT payments will be made over GPI “within two years.”
SWIFT launched its PoC Gateway in January in collaboration with Blockchain Consortium R3. The firm explained at the time that the trail would connect the GPI Link gateway with R3’s Corda platform to monitor payment flows and support application programming interfaces (APIs), as well as SWIFT and ISO standards. David E. Rutter, CEO of R3 stated:
“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.”
Notably, R3 began testing its Corda Settler payments engine with XRP, leading to frisson of excitement among Ripple supporters. R3 has been firm from the start that their technology was always designed to be interoperable with a variety of payments systems.