Wells Fargo and HSBC launch blockchain for currency exchange settlements – Bits Media

The American banking group Wells Fargo and the British bank HSBC are using blockchain to settle currency exchange transactions..

In a joint press release from Wells Fargo and HSBC
Reported, that they will use blockchain to process transactions with US dollars, Canadian dollars, British pounds and euros. Banks plan to add other currencies in the near future.

The release states, that the use of blockchain will provide the two banking giants with transparency of the settlement status for agreed Forex transactions in the above-mentioned currencies. Expected, that the solution will reduce the risks and costs of processing payments in foreign currency. Head of Macrofinance at Wells Fargo Mark Jones (Mark Jones) reported, that the bank has not previously used blockchain for settlements in foreign currency.

“We will be using blockchain technology for the first time in the settlement process for international payments. We are very pleased to collaborate with HSBC on the project, which places both organizations at the forefront of blockchain innovation. We count, that this will be the first step in using transformative technologies in our industry in the years to come.".

Head of FX Partnerships and Offerings at HSBC Mark Williamson (Mark Williamson) stated, that against the backdrop of global digitalization, this project is very promising.

“As financial services continue to digitize the means of storing payments and value on the blockchain, We are pleased to work with Wells Fargo to implement this important international digital backbone for the confirmation and settlement of foreign exchange transactions.".

In addition to reducing risks, blockchain should increase the speed and efficiency of settlements through the use of cryptography technology. Thus, Wells Fargo and HSBC will be able to accumulate bilateral payment obligations. This opportunity is based on the HSBC FX Everywhere platform, which since its launch in 2018 conducted more than three million intrabank transactions in the amount of more than $2.5 trillion.

Blockchain is used widely in a variety of areas. Recently, the largest crowdfunding platform Kickstarter announced plans to create a decentralized crowdfunding protocol on the Celo blockchain. In December the Government of Gibraltar reported, that it plans to integrate the RSK blockchain into the eGov government platform to improve the quality of services provided. And legislators on the island of Puerto Rico intend to use blockchain to ensure transparency in public sector transactions and accountability..