In an encouraging report for blockchain technology, financial giant HSBC reports that it has slashed the costs of settling foreign exchange trades on its proprietary blockchain system.
Speaking to Reuters, HSBC said its forex costs on between 3,500 and 5,000 trades per day on its FX Everywhere system have dropped significantly. The bank processes trades worth $350 billion each day, according to Mark Williamon, COO of FX Everywhere. The FX component has generated $250 billion in trades since February 2018.
The report is one of the few giving actual results in the field beyond beta testing and limited exposures.
“We going at a pace now,” Williamson told Reuters. “We’re able to demonstrate that this is not a one-off proof of concept or just one or two trades.”
HSBC would not give data on overall forex trades settled by traditional processes, saying only that those settled on the platform represented a “small” proportion.
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