Swift white paper examines blockchain opportunity for global liquidity optimization

Swift has released a report on the proof of concept for real-time Nostro reconciliation using distributed ledger technology. In particular, it is examining whether Swift's DLT can help reconcile these Nostro accounts more quickly and efficiently than other methods, according to a press release. A Nostro is a bank account that holds foreign currency from another bank. They are typically used for foreign or cross border exchanges.

Preliminary results show that the DLT application can offer real time liquidity monitoring and reconciliation. It also offers real time visibility to both the account holder and servicer on the available and forecasted liquidity on the Nostro account, according to the release.

"The DLT POC supports Swift's goal of making cross-border payments more efficient — a mission we have championed through SWIFT gpi, which offers customers fast, transparent and traceable cross-border payments,” Wim Raymaekers, Swift head of banking market and Swift gpi, said in the release.