HSBC, a giant in international banking, fulfilled a $250 billion Forex trade using a platform based on Blockchain technology in 2018.
Forex means trading foreign currencies. Trading foreign currencies is exchanging currency with another. These trades are used for companies’ and governments’ services, purchasing and selling goods, travel costs, passengers’ shopping, or investments of individuals and enterprises.
HSBC is a British banking company established in 1865 by Scottish banker Thomas Sutherland in Hong Kong, a British colony at the time. Its central branch is located in HSBC tower in London. Currently, HSBC is one of the largest banks in the world, and in 2012 with a net worth of $2.693 trillion was recognized as the largest bank in the world regarding assets. This banking company provides a wide variety of banking services such as micro-banking, personal and corporate investment, investment management, wealth management, mortgage loans, and credit cards.
HSBC company released this number in an official press release from Financial Times newspaper on January 14.
Financial Times is one of the most important, influential, and famous eco-political newspapers in Britain and in the world. Its headquarters are located in London. Financial Times was founded on January 9, 1888, in London and it is currently being published in 23 major cities of the world including London, Milan, Madrid, Los Angeles, Hong Kong, Washington, Seoul, and Dubai. It is the only newspaper in the world that analyzes the daily status of the London stock market and other prominent ones in the world with thorough analyses.
HSBC company has registered 3 million transactions using its own exclusive Blockchain platform, FX Everywhere, which has reached 150000 payments since its establishment back in February 2018.
Financial Times stated, quoting Richard Bibbey, a chief global operational officer of currencies, that this technology enables HSBC to make thousands of foreign currency transactions in the dozens of countries.
FX Everywhere platform utilizes distributed logistics technology to increase the efficiency of this internal flow.
This publication has not reported the total payment of the HSBC bank in the last year; Reuters news agency confirmed, quoting Richard Bibbey, that $250 billion is only a small portion of the total sum of trades.
He further added, “After successful implementation of the internal bank, we are currently considering how this technology can help multinational clients to manage better their trade flows among organizations.”
Regarding the opportunities to implement Blockchain in conventional banking and previous multi-revisions, these statistics are remarkable.
Last Friday, Joshua Kroeker, senior innovation manager at HSBC, said during a media call that this company will soon release trial plans to organize Blockchain transactions.
HSBC has recently participated in a number of projects such as launching a joint commercial financial platform in Hong Kong in November. Meanwhile, in a financial conference called Money20/20, which was held in November in Las Vegas, Craig Ramsey, HSBC’s global innovation leader for global liquidity and cash management, told his audience that both Blockchain and cryptocurrency approaches had posed a real challenge for interbank trades.