HSBC Holdings, one of the largest banks in the world, has revealed that nearly $250 billion of trade settlements have been handled using Distributed Ledger Technologies (DLTs).
Focusing on internal balance sheets for global transactions, a press release by the bank said that over 3 million foreign exchange transactions had been made, and 150,000 using HSBC’s FX Everywhere platform.
HSBC’s interim global head of FX and commodities, Richard Bibbey, spoke of how DLTs have made internal processes more efficient:
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.
The bank referred to the positives of blockchain technology, such as being able to have a shared and single version of the truth.
In early 2018, it came to be known that HSBC had taken an interest in blockchain and was considering testing the technology. It is believed that the bank is carrying out multiple pilot programs.
One project of particular note focuses on the digitization of credit. In May 2018, the bank claimed that it had made world’s first commercially viable trade finance transaction using using blockchain. The bank issued a letter of credit to ING.
HSBC and Other Banks Are Keen on Blockchain
Ripple is well-known as a project that is working closely with banks, and on a global level. RippleNet has participanting banks in several continents, including the likes of American Express and one of the world’s largest Islamic banks, the Kuwait Finance House.
British fintech company Billion Group, which has received 1 million Euros in investment funds, has created a blockchain solution to help process customer data.
JPMorgan Chase and Goldman Sachs, which are no strangers to the blockchain industry, have put in significant resources for the research and implementation of the technology.
While many claim that blockchain will take away from the financial power of traditional financial institutions, banks are highly excited about the possibilities of the technology. Areas of research include cross-border and corporate payments, and more efficient internal processes.