The London HSBC has worked hard to try and reduce the settling of the foreign exchange trade by over one quarter. They are offering an insight into the glimpses of the savings that this type of technology has to offer, and they are also working hard to harness new technology. The bank processes between 3,500 and 5,000 trades every single day on the FX Everywhere system. They also settle trades that are worth over $350 million, and this comes right from Mark Williamson. He is the chief operating office for the FX cash trading system and he speaks highly of the platform.
The HSBC platform really is a rare example of how blockchain technology is being put to practical use by any major bank. Last month, the lender said that they had been able to process trades worth $250 billion. The fresh details of the scale of the project really do suggest that the potential of the technology is helping to make significant cost savings, and this is great when you look at the financial services industry. Williamson has said that they are growing at a fast pace now, and that they are also able to demonstrate that this is not a one-off, or a fluke. HSBC are not giving details on the forex shifts that are being settled via the traditional process. They are also saying that the ones that settled on the platform actually only represent a very small proportion of the work that they do.
Supporters of the blockchain are all part of a shared database and they believe that they can securely process and even settle transactions without the need for a third-party check. They also believe that they can completely transform industries so that they go from finance to real estate. They do this by eliminating the inefficient and even cumbersome processes that are in place right now.
The hype has rarely been hypedand financial institutions really are taking a cautious approach. This is especially the case when you look at the technology that is conceived to underpin the actual Bitcoin currency itself.
HSBC works hard to try and coordinate payments across Europe, the Americas and even the Asia Pacific as well. These trading hubs are based on the platform and they are also known as being a shared permission ledger. This approves the multiple parties and it helps them to amend and even update themselves in real time.
William himself has come out to say that HSBC are settling millions of dollars every single day. They are also helping the bank to manage that risk by allowing them to see any real-time exposure. This can be done across multiple balance sheets. He did not however give any accurate figure as to the daily transactions. That being said, he does believe that internal flaws are more than likely to be settled on the system. Then bank is trying to provide the tools to help corporate clients to cross borders and even overcome Forex flaws. The more participants that you have joining the HSBC ledger, and the ecosystem in general, the more efficient everyone is going to be when it comes to providing a quality service to the clients.