HSBC reveals it has settled more than three 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.
Richard Bibbey, interim global head of FX and commodities at HSBC, says: “The global, cross-border nature of HSBC and its clients sees us conducting thousands of foreign exchange transactions within the bank, across multiple balance sheets, in dozens of countries. HSBC FX Everywhere uses DLT to drastically increase the efficiency of these internal flows.”
Using a shared permissioned ledger, the bank can automate several manual procedures and reduce reliance on external settlement networks.
For example, confirmation and settlement is automated by matching and netting transactions, and HSBC gets a consolidated, global view of forward cash flows.
The bank doesn’t discuss any more details – but looking ahead Bibbey says HSBC is exploring how this technology could help multinational clients – such as those with multiple treasury centres and cross-border supply chains.
Earlier this year, and over in China, HSBC was involved in the launch of an interbank blockchain platform for trade finance.