SWIFT Partner with Symbiont to Provide Accurate Data using Blockchain
SWIFT (The Society for Worldwide Interbank Financial Telecommunication), a global financial messaging company, has partnered with Symbiont, a fintech company to provide more accurate and precise data for financial firms using blockchain technology.
The Main Problem
The reason behind this project is due to involvement in many intermediaries including central securities depositories (CSDs), local and global custodians, fund managers, paying agents, etc which make up the investment chain.
Each must share information about the event, and they may communicate about it differently due to different data standards.
Those multiple issuers provide information about the same event to asset managers, custodians, brokers and other recipients downstream, sometimes with missing, contradictory or inaccurate data.
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To arrive at an accurate picture of the event, they have to manually analyze, compare, and clean the data.
Ehrenfeld said “Major asset managers will have hundreds of custodian relationships, with assets and securities scattered across a wide range of counterparties.”
“If there’s a corporate event, these asset managers and other intermediaries will receive information from all these sources, and this is where we start to see problems,” added him.
Solving The Problem
This partnership was announced on Tuesday September 13 by SWIFT on their website. Another company who joined in the pilot project are Vanguard, Citigroup, American Century Investments, and Northern.
Strategy Director SWIFT, Jonathan Ehrenfeld said “we are collaborating with our community to deliver solution that delivers accurate corporate action data to market in near real time.”
The Assembly platform leverages the 11,000+ institutions connected to SWIFT globally to create a network effect through smart contracts and blockchain.
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“By bringing Symbiont’s Assembly and smart contracts together with SWIFT’s extensive network, we’re able to automatically harmonise data from multiple sources of a corporate action event,” said Chief Innovation Officer at SWIFT Tom Zschach.
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