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HSBC Settled $250 Bln Worth Forex Trades On Blockchain Last Year

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Asia-focused lender HSBC said it settled $250 billion worth of forex trades using blockchain in the last year.

Since February, HSBC has settled over 3 million forex trades and made over 150,000 payments using the distributed ledger technology.

The bank used its FX Everywhere platform to co-ordinate payments across its internal balance sheets, in dozens of countries.

Richard Bibbey, interim global head, FX and commodities,HSBC, said, "HSBC FX Everywhere uses distributed ledger technology to drastically increase the efficiency of these internal flows."

Following the successful implementation inside the bank, it is now exploring how this technology could help multinational clients to better manage foreign exchange flows.

Forex trades settled by blockchain in the bank reportedly represented a small proportion, compared to those settled by traditional processes. Yet, it is considered as a major step in the acceptance of blockchain by mainstream finance firms.

In the banking industry, many major firms are getting into the new DLT technology, which is expected to simplify the processes of settlements to payments, lower the risks of errors and delays, and cut costs significantly.

Financial giant Bank of America is a major player, emerging as the one with the most blockchain-related patents in the world.

Spanish banking giant BBVA, along with other major banks recently has joined the new proposed blockchain association by the European Commission. In December, UAE Banks Federation had announced its intention to explore the adoption of blockchain in its member banks.

Signature Bank, a New York-based commercial bank, recently announced the launch of a blockchain-based digital payments platform to enable real-time payments for its commercial clients.

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