HSBC Bank plc and Wells Fargo & Company, two giants in the banking industry, announced on Thursday the expansion of a distributed ledger technology (DLT ) solution they are using for foreign exchange (FX) settlements. It now includes CNH (offshore yuan).
According to the press release, two institutions launched the bilateral blockchain solution in December 2021, which currently covers five main currencies, the US dollar, the British pound sterling, the Canadian dollar, the euro and the offshore yuan. In the last 11 months, Wells Fargo and HSBC settled over $200 billion in FX transactions and current plans anticipate further expansion to include more currencies.
Companies share a private ledger created by a joint team with Wells Fargo and HSBC employees. All FX settlements and transaction records are visible and transparent to each party. The companies use a DLT technology provided by Baton System called CORE. The platform allows for the efficient clearing of bilateral cross-border obligations in multiple currencies.
"We are pleased to expand the capabilities of the platform to include CNH, allowing us to reduce risk in the payment settlement process. The collaboration shows that we can pursue innovative technologies and apply them in a way that enhances our existing infrastructure and ultimately benefits our clients," Vince Hindman, the Global Head of Rates and FX Solutions at Wells Fargo Corporate & Investment Bank, said.
Metaverse Fund From HSBC
To this end, the institution has purchased a virtual land in Sandbox , one of the more popular web3 games. The fund focuses on experience and discovery, infrastructure, virtualization, interface and computing.
"We see many exciting opportunities in this space as companies of different backgrounds and sizes are flocking into the ecosystem," Lina Lim, the Regional Head of Discretionary and Funds for Investments and Wealth Solutions, Asia Pacific at HSBC, said in April.
According to the rival investment bank, Citi, the metaverse industry is expected to be worth $13 billion by 2030.