HSBC and Wells Fargo to Settle Forex Transactions Using Blockchain

UTC by Sanaa Sharma · 3 min read
HSBC and Wells Fargo to Settle Forex Transactions Using Blockchain
Photo: Unsplash

The blockchain platform allows the facile transfer of funds and trade without the interference of CLS, a specialist US financial institution that provides settlement services.

British multinational investment bank HSBC and American multinational financial services company Wells Fargo are planning to resolve the bilateral foreign currency (FX) trades via a blockchain platform.

The news concerning two of the leading Investment Banks of the world presses on the rising adoption of blockchain technology in other fields around the globe.

The two banking giants shook hands for using a shared settlement ledger to help in the exchange of US dollar, Canadian dollar, Pound, and Euro transactions. Both the banks have plans to include other currencies in the system in the near future. The blockchain-based settlement platform utilizes HSBC proprietary technology to function. The firm working on the Core-FX Distributed Ledger technology (DLT) is Baton Systems. In a statement from the information technology company on Monday, the two banks will utilize the Blockchain platform to clear FX trades through real currencies and accounts in no longer than a hundred and eighty seconds.

The blockchain platform allows the facile transfer of funds and trade without the interference of CLS, a specialist US financial institution that provides settlement services. According to Baton Systems, the quick and convenient settlement between the two banks reduces the risk of exposure.

The latest announcement in the world of banking and blockchain comes after many Wall Street Banking Giants have started jumping on the crypto/ Blockchain bandwagon. Recently, one of the largest American banking companies Goldman Sachs was allegedly scrutinizing the plan to incorporate Blockchain technology into their everyday procedures. The Bank is among a handful of tier-one US banks trying to decipher how to utilize Bitcoin as collateral for cash loans to institutions.

The concept of banks acknowledging Bitcoin as collateral was observed as a partial okay-signal during the US administration. During the session, Chief of the Office of Comptroller of the Currency (OCC), Brian Brooks stated that Bitcoin could be viewed as coin/cash, while banks could be called the custodians.

Another banking giant JPMorgan has also been planning to recruit software engineers to concentrate on “Collateral Blockchain Tokenization”. On an interesting note, there are about 56 blockchain jobs on JPM’s website, with 34 of them being tech jobs. Onyx, which is the unit responsible for developing the JPM coin, the bank’s wholesale payments token, was established last October.

In the previous month, SIX Swiss Exchange’s new Blockchain-based digital trading and settlement wing published its initial bond. The issuance of the new bond allowed people to see that the Blockchain is available to aid conventional securities and not just the crypto assets it was initially created for.

Blockchain News, FinTech News, News
Sanaa Sharma
Author Sanaa Sharma

Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.

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