HSBC and Wells Fargo tap blockchain to settle forex trades

Reuters reports that HSBC and Wells Fargo have begun using a blockchain platform to settle bilateral foreign currency (FX) trades.

Baton Systems, the company behind the Core-FX distributed ledger technology, or DLT, claim that the two banks are using the platform to settle FX trades using real currencies and real accounts, in less than three minutes.

Baton Systems said that the Core-FX ledger helps to avoid passing the trades through CLS, a third-party bank widely used in the sector for settling FX trades.

Baton also said that such rapid settlement directly between the two banks cuts exposure and settlement risks.

Similarly, last month, SIX Swiss Exchange’s new blockchain based digital trading and settlement arm issued and its first bond.

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