Distributed Ledger Technology (DLT)

Understanding the potential to transform the financial industry.

Nostro reconciliation

Can DLT pave the way for real-time Nostro reconciliation and liquidity optimisation?

The DLT PoC for Nostro reconciliation is a project led by SWIFT, and 34 leading global transaction banks that are a part of SWIFT gpi, to explore whether distributed ledgers could help banks reconcile transactions and optimize the liquidity of their Nostro accounts more efficiently and in real time, lowering costs and operational risk.

Under the current correspondent banking model, banks need to monitor the funds in their overseas accounts via daily debit and credit updates, and end-of-day statements. The operational work involved and lack of visibility on available funds resulting in overfunding the account represents a significant portion of the cost of making cross-border payments. This is a major pain-point for many banks.

Gpi member banks highlighted the Nostro reconciliation area as a pain-point and a potential area where the use of a shared ledger could help resolve these issues.  As result, we co-created a PoC with our customers to explore whether distributed ledgers could help banks reconcile transactions and optimize the liquidity of their Nostro accounts more efficiently and in real time, lowering costs and operational risk.

gpi real-time Nostro Proof of Concept

Download (578.67 KB)
Last update: 
8 March 2018

Can blockchain pave the way for real-time Nostro reconciliation and liquidity optimisation?

  • Reports
  • Report
English