Mark Jones, co-head of Macro, Wells Fargo Corporate & Investment Bank, said:
We are pleased to announce that we will be utilizing blockchain technology for the first time in the settlement process of cross-border payments. We are extremely excited to be collaborating with HSBC on a project which places both organizations at the forefront of blockchain innovation. We believe thiswill be the first step of many utilizing transformative technology across our industry in the years ahead.
The shared, private ledger boosts settlement speed and efficiency with the use of blockchain technology. The banks will be able to net bilateral payment obligations and settle on a previously agreed pace a few times per day within the flexibility of the settlement windows enabled by this technology.
In 2021 leading financial organizations around the globe have started using blockchain technology for cross-border transactions due to its transparency.
Mark Williamson, global head of FX Partnerships & Propositions at HSBC added:
As financial services continue to digitize the store of payment and value on blockchain, we are delighted to work with Wells Fargo in the adoption of this important cross-border digital backbone for the confirmation and settlement of Foreign Exchange trades. We are excited to continue to grow the FX Everywhere network whilst ensuring that we are well placed to transact in new forms of regulated digital currencies such as Central Bank Digital Currencies.
HSBC recently reported strong performance in the third quarter of the year with overall profit before tax reaching $5.4 billion and going up 74% compared to Q3 last year.
