HSBC finds solid, real-world application for blockchain-based technologies
(15 January 2019 – UK) HSBC has processed more than 3 million FX transactions worth $250 billion using blockchain technology, offering a rare example of a distributed ledger-based product that has proven applicable in wholesale finance.
The project, known as “FX Everywhere”, has been used for payments across HSBC’s internal balance sheets using a shared ledger for a year. During that time the Bank has handled more than 150,000 payments — netted down from 3m transactions — automating previously manual processes and reducing the bank’s reliance on external technology providers.
“HSBC . . . conduct[s] thousands of foreign exchange transactions within the bank, across multiple balance sheets, in dozens of countries,” said Richard Bibbey, acting global head of currencies at HSBC. “FX Everywhere uses distributed ledger technology to drastically increase the efficiency of these internal flows.”
HSBC now plans to make its FX Everywhere platform available to large clients, particularly companies that manage a number of treasury centres and cross-border payments.
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