HSBC And Wells Fargo Will Use Blockchain To Settle Forex Transactions

HSBC and Wells Fargo as two banking giants will use blockchain technology to settle Forex transactions and trades as we can see more today in our latest blockchain news.

Wells Fargo is a leading American financial services organization while HSBC Bank is a major British monetary institution that will employ a blockchain-based product that will settle matched foreign exchange transactions. With the partnership, HSBC and Wells Fargo will use a shared ledger to process operations with Canadian Dollars, US dollars, Euros, and British pounds with more plans to extend the additional currencies in the near future. According to the recent press release, the blockcahin technology will provide the two banking giants with transparency of settlement status for the Forex transactions in the currencies mentioned. The solution will allow both entities to utilize the Payment vs Payment operations and it is expected to reduce the risks and costs of processing the foreign exchange settlements. Mark Jones as the co-head of Macro at Wells Fargo revealed that this is the first time that blockchain technology will be used in such a manner:

“We are pleased to announce that we will be utilizing blockchain technology for the first time in the settlement process of cross-border payments. We are extremely excited to be collaborating with HSBC on a project which places both organizations at the forefront of blockchain innovation. We believe this will be the first step of many utilizing transformative technology across our industry in the years ahead.”

Apart from reducing the risks, the shared ledger will enhance settlement speed as well as efficiency by using blockchain technology. HSBC and Wells Fargo will be able to gather the bilateral payment obligations and the opportunity builds on the HSBC FX Everywhere platform that already transacted over three million intrabank trades worth $2.5 trillion since the launch in 2018. The British institution raised hopes to expand this system by adding more participants and introducing the central Financial Market Infrastructure provider in order to manage the standards of the platform. Mark Williamson as the Global Head of FX Partnerships and Propositions said:

“As financial services continue to digitize the store of payment and value on the blockchain, we are delighted to work with Wells Fargo in the adoption of this important cross-border digital backbone for the confirmation and settlement of Foreign Exchange trades.”

The Wall Street giant filled with the US SEC to register a designated BTC fund and to launch it, it partnered with FS Investments and New York Digital Investment Group. Elliptic is a London-based blockchain company that secured $60 million in funding from Wells Fargo and SoftBank.