One of the largest banks in the world, HSBC, has revealed that blockchain technology has assisted them in settling $250 billion worth of forex trades.
The versatility of blockchain technology has resulted in its integration into a range of businesses across various industries. From art to health to sports, its attraction and functionality cannot be dismissed.
The financial sector is one such industry where the wonders of the blockchain have been embraced. In fact, according to TechRadar, HSBC, the major financial services company, has stated that the technology helped them move billions of dollars over the last year.
HSBC Moves Billions with Blockchain
It is reported that the company settled $250 billion worth of forex trades since February 2018. This was the result of three million trades and more than 150,000 payments. While these are, of course, some big numbers, HSBC has added that it represents just a “small” portion of the company’s business.
Blockchain’s speed, immutability, and transparency make its the ideal addition to certain processes within businesses. HSBC’s head of forex and commodities, Richard Bibbey, explained exactly how this technology is positively impacting the company. He made reference to HSBC’s FX Everywhere project, saying:
HSBC . . . conduct[s] thousands of foreign exchange transactions within the bank, across multiple balance sheets, in dozens of countries. FX Everywhere uses distributed ledger technology to drastically increase the efficiency of these internal flows.
While HSBC seems to have achieved success with blockchain, other financial institutions are still wary when it comes to the disruptive technology. The fact that it can automate and potentially rapidly streamline processes is apparently not incentive enough when compared to the lack of industry regulations.
However, some platforms are working with regulatory authorities to ensure that they’re toeing the line. BitcoinerX recently reported that TRON has hired its first head of compliance to make sure that the platform is following the rules.
Embracing Disruptive Technology
Blockchain is also making a big difference in industries that rely quite heavily on record keeping, such as land ownership. Teton County in the U.S. state of Wyoming has turned to the technology to overhaul their current process of land information storage.
We have also previously reported on how blockchain could be the key to improving the automotive industry. While only a small percentage of industry stakeholders are actually using the technology, it has the potential to completely change the industry by providing a much-needed level of transparency.
It will be interesting to see if HSBC’s positive stance on blockchain will encourage others in the industry to also embrace it.
Do you think more financial institutions will be using blockchain technology this year? Let us know in the comments below!
Images courtesy of Pixabay.