In one of the latest emerging blockchain use cases, British Multinational investment bank HSBC and US banking giant Wells Fargo announced Monday that they will use a blockchain platform to conduct their bilateral foreign currency (FX) trades.
As per the announcement, both the banks will share a settlement ledger to process US dollar, Canadian dollar, British pound sterling, and Euro transactions, with plans to add more currencies in the future. The two banks will use the platform Baton Systems, developer of the Core-FX distributed ledger technology.
With the new use case, the blockchain industry has entered the $6.6 trillion-a-day foreign currency market. Major US banks, such as Goldman Sachs, have also looked into ways to incorporate blockchain into their business needs.
Mark Williamson, global head of FX Partnerships & Propositions at HSBC commented:
“As financial services continue to digitize the store of payment and value on blockchain, we are delighted to work with Wells Fargo in the adoption of this important cross-border digital backbone for the confirmation and settlement of Foreign Exchange trades.”