HSBC Processed $250 Billion Forex Transactions Using Blockchain In 2018

Announcements, Blockchain, News | January 15, 2019 By:

Banking giant HSBC has revealed that it settled $250 billion worth of forex trades using blockchain technology in 2018.

In a statement, the bank said it has settled over three million forex trades and made over 150,000 payments since February 2018 using a blockchain-based platform, called HSBC FX Everywhere. The platform reportedly allowed HSBC to verify the settlement of payments without the need to wait for external confirmation.

“Blockchain technology has automated manual processes and reduced its reliance on external technology,” the bank said. “Blockchain has also lowered the risks of errors and delays, cut costs, and helped the bank to better optimize its balance sheet.”

Richard Bibbey, the bank’s acting head of forex and commodities, said that the bank developed HSBC FX Everywhere to drastically increase the efficiency of the bank’s internal flows, which include thousands of forex transactions across multiple balance sheets.

“Following successful implementation inside the bank, we are now exploring how this technology could help multinational clients – who also have multiple treasury centres and cross-border supply chains – better manage foreign exchange flows within their organisations,” Bibbey said.

HSBC, which is a member of the R3 blockchain consortium, has been investing in blockchain technology to simplify and slash costs in processes from settlements to payments. In November 2017, HSBC, along with nine major global bank, developed the We.Trade platform, a blockchain solution designed to address the expectations of customers to make cross-border trade more straightforward. In November 2018, HSBC and Bank Brussels completed India’s first live trade finance transaction using blockchain technology.