Banking company HSBC, which has offices in more than 80 countries, and Wells Fargo, the 4th largest bank in America by financial size, started using blockchain technology for foreign exchange transactions (FX) between them.
Baton Systems, the company behind Core-FX distributed ledger technology (DLT – Distributed Ledger Technology), said on Monday that the two companies processed FX transactions between them in less than 3 minutes using real accounts and real currencies.
In this way, transactions can take place without the third-party bank CLS, which is widely used in the industry. According to Baton, the two companies’ agreement without the need for a third party eliminates the risks and conflicts between them.
Last month, the first bond of the first blockchain-based digital trading and settlement arm of Swedish bank SIX SWISS Exchange was issued.
With the absence of the occasional third party, deals can be made more quickly and companies do not have to hold on to their capital for a certain period of time.