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SWIFT to bring benefits of gpi to other trade platforms

The huge problem with trade platforms in general and blockchain based ones, in particular, is that they cannot interact with each other, see. To support the growing demand amongst trade ecosystems for secure and reliable settlement, SWIFT has launched a proof of concept (PoC) to trial a new gateway to interlink trade and e-commerce platforms with gpi – the new standard in cross-border payments.

gpi Link

gpi Link will seamlessly connect multiple trade platforms to gpi members, enabling gpi payment initiation, end-to-end payment tracking, payer authentication and credit confirmation.

The gateway will also allow the continuous monitoring and control of payment flows and the subsequent movement of goods by those trade platforms.

And to ensure global integration and interoperability, it will support APIs, as well as SWIFT and ISO standards.

Trade transactions powered by gpi

The first stage of the PoC will work on R3’s leading blockchain platform, Corda, to bring the benefits of gpi payments - speed, ubiquity and certainty - to distributed ledger technology (DLT)-enabled trade.

The PoC addresses the need for e-commerce and trade ecosystems to be supported by global, fast, secure and transparent settlement using fiat currencies by enabling ‘off-ledger’ payment settlement based on gpi.

In the PoC, corporates using the R3 platform will be able to:

  • authorise payments from their banks via gpi Link;
  • settle gpi payments through their bank; and
  • receive credit confirmations on the respective trade platforms via gpi Link on completion.

While the PoC initially addresses R3’s DLT-based trade environment, it will be extended to support other DLT, non-DLT and e-commerce trade platforms.

The results of the PoC will be demonstrated as a prototype at Sibos in London in September 2019.

Extending the benefits of gpi

By enabling trade platform ecosystems to seamlessly integrate gpi Link into their environments, the benefits of gpi are now able to be extended to a wider range of corporates and markets.

All trade platforms require tight linkages with trusted, fast and secure cross-border payments mechanisms such as gpi. While DLT-enabled trade is taking off, Swift’s Press Release claims that “there is still little appetite for settlement in crypto-currencies and a pressing need for fast and safe settlement in fiat currencies.”  Luc Meurant, SWIFT’s Chief Marketing Officer commented: “With the gpi Link, banks will be able to provide rapid, transparent settlement services to e-commerce and trading platforms, opening up whole new ecosystems to the speed, security, ubiquity and transparency of gpi and enabling them to grow and prosper in the new digital economy. Given the adoption of the Corda platform by trade ecosystems, it was a natural choice to run this proof of concept with R3.”


This item appears in the following sections:
SWIFT Corporate Connectivity
Financial Supply Chain Platforms
Trade Transaction & Payment Services

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