Leading and global banking giant, HSBC on Monday said that it has settled forex trades worth $250 billion in last year, suggesting that the earlier hesitant financial sector is now quickly embracing the much-hyped technology.
In its release, HSBC has said that the bank has settled more than 3 million forex trades and made over 150,000 payments since February using blockchain technology. Further, it added that the percentage of the total deals on blockchain represents a small proportion compared to forex trades settled through traditional process.
Still, the data is very encouraging for the sector and use of blockchain in mainstream finance as the sector has been very reluctant initially to embrace the technology.
HSBC has also said that the use of blockchain technology in the processes has helped it to automate manual processes and reduce its reliance on external technology. Further, it has also lowered the risk of errors and delays, reduced costs and helped the bank to better optimise its balance sheet.
Richard Bibbey, HSBC’s acting Head of Forex and Commodities said that “the bank was looking at how the technology could help multinational clients better manage forex flows.”
In May last year, HSBC has executed the world’s first blockchain based trade finance transaction for US Food and Agriculture giant Cargill by issuing a letter of credit on the blockchain. The transaction was for movement of soybeans from Argentina to Malaysia.
While Reliance Industries along with HSBC has executed India’s first blockchain based trade finance transaction in November last year.
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