HSBC has now settled more than three million FX transactions and made more than 150,000 payments worth $250 billion using distributed ledger technology (DLT), it announced today.
The bank’s DLT solution, called HSBC FX Everywhere, has been used for the past year to orchestrate payments across HSBC’s internal balance sheets.
HSBC highlights three key benefits of the solution. The first is that it provides a shared, single version of “the truth of intra-company trades”, from execution through to settlement, which reduces risk of discrepancy and delay. Secondly, it means that confirmation and settlement is automated by matching and netting transactions, which reduces costs and reliance on external settlement networks. A third benefit is that DLT provides a consolidated, global view of forward cash flows, and certainty of funds throughout the funding cycle, supporting greater balance sheet optimisation.
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 distributed ledger technology to drastically increase the efficiency of these internal flows.”
He adds: “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.”