HSBC shared its experience of using distributed ledger technology

HSBC made 150,000 payments using distributed ledger technology

HSBC shared its experience of using distributed ledger technology. Source: shutterstock.com

HSBC has settled more than 3 million FX transactions and made more than 150 thousand 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, creating significant efficiencies and opportunities.

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 the risk of discrepancy and delay.
  • Payments orchestration. Confirmation and settlement are 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 support greater balance sheet optimization.
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. Following successful implementation inside the bank, we are now exploring how this technology could help multinational clients - who also have multiple treasury centers and cross-border supply chains - better manage foreign exchange flows within their organizations
Richard Bibbey, Interim Global Head of FX & Commodities at HSBC

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