DLT has the potential to bring efficiencies to the financial industry through information propagation, full traceability, simplified reconciliation, and high resiliency on a trusted distributed system. However, significant R&D is still needed to meet the industry's requirements before DLTs can be widely adopted at scale. SWIFT has been conducting customer meetings, developing an open source permissioned DLT platform, and a bond lifecycle proof of concept to advance DLT capabilities and standards. SWIFT's objective is to evolve its platform to offer DLT-based services to its members when the technology matures and firm use cases emerge.

1. DLT - Key industry requirements for an
industry-wide platform
Fabian Vandenreydt, Global Head of Securities Markets, Innotribe & SWIFT Institute
Brussels – 13 October 2016

2. DLTs have the potential to bring new opportunities and efficiencies to the
financial industry
Information
propagation
Full
Traceability
Simplified
Reconciliation
High
resiliency
Trusted
distributed
system

3. Use cases across the full value chain (from issuance to asset servicing)
Framework: O. Wyman

4. Interoperability/transition requirements
Industry
backbone
Legacy
DLT
Legacy
DLT
Legacy
DLT
Bank A Bank BIntermediary X

5. Technology assessment of existing DLTs
• DLTs emerged from C2C
market
• The financial industry has
a different set of
requirements to be widely
adopted

6. Conclusions of the technology assessment
• There are promising developments in each of
these requirements
• Significant extra R&D work is needed in all
these domains before DLTs can be applied at
the scale required by the financial industry

7. DLT SWIFT position

8. DLT - Activities done so far and What’s in the pipeline?
Bilateral
customer meetings

9. Open Source
80+ members
Free
Permissioned
DLT
Production
qualityBuilt for
enterprise

10. Bond Lifecycle
Proof of Concept
Technology
Eris/Tendermint
platform.
Smart Contract
written in Solidity
Why
Thought
leadership
Towards a
product
What
Bond
ISO20022
Value-added
features
Area
Securities and
Standards

11. Blockchain address linked to legal identity
certified by certification authority, including
central revocation capabilities
ISO20022 business
model applied to DLT
Data access controlled
through smart contact
based on identity and
assigned profile
Private blockchain with
Closed User Group and
user profiles
PBFT consensus
algorithm for fast
consensus
Bond life cycle
Proof of Concept

12. Information paper
Key takeaways
• DLT implementations can already benefit
from existing business
standards like ISO 20022
• New DLT standards should leverage
ISO 20022 to avoid reinventing the wheel
and to enable interoperability
• In the future, open, DLT-specific business
standards will be required.

13. Tipping point ?
 Regulation
 Network
effect trigger
 Standards

14. 2 years, 10 years

15. What is the objective?
SWIFT’s focus is on building technical,
operational and business capabilities with a
view to evolving our platform such that DLT-
based services could be offered to our
11,000+ members, when the technology
matures and firm business use cases
emerge

16. www.swift.com