HSBC to outsource blockchain tech used to settle $250bn FX transactions

HSBC has settled more than 3 million FX transactions and made more than 150,000 payments worth $250 billion using distributed ledger technology (DLT). This solution, called HSBC FX Everywhere, has been used for the past year to orchestrate payments across HSBC’s internal balance sheets.

Using a shared permissioned ledger, which provides singularity, transparency and immutability, it automates several manual procedures and reduces reliance on external settlement networks.

Key benefits include:

  • Singularity, transparency and immutability. A shared, single version of the truth of intra-company trades, from execution through to settlement, which reduces risk of discrepancy and delay
  • Payments orchestration. Confirmation and settlement is automated by matching and netting transactions, which reduces costs and reliance on external settlement networks
  • Balance sheet optimization. A consolidated, global view of forward cash flows, and certainty of funds throughout the funding cycle, supports greater balance sheet optimization

Richard Bibbey, the acting global head of FX and Commodities at HSBC, said in a statement that the bank is now exploring making the technology available to multinational clients to manage multiple treasury centers and cross-border supply chains, for examples.

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