Amongst the many fingers pointed at blockchain technologies’ use cases, one has been shut down as HSBC illustrates a successful real-world blockchain use case. The financial giant has been successfully employing a blockchain-based “FX Everywhere” platform saving over 20% of costs associated with forex trade settlements.
Launched a little while ago, the FX Everywhere has processed a total of $250 Billion worth of trades since its inception. This is notable because it will offer some much-needed slap back to the naysayers, who have been questioning the technologies real-world use case.
That it saves over 20% further illustrates that blockchain can make a difference especially when it comes to cross border payments. Mark Williamson, the chief operating officer of FX cash trading and risk management, said:
“We going at a pace now. We’re able to demonstrate that this is not a one-off proof of concept or just one or two trades.”
While the exact figures for the value of trades still being settled using the trading process weren’t revealed, those being settled on the FX Everywhere platform reportedly represent a small fraction of the overall trades. Regardless, a financial giant employing blockchain on large scale in itself a grand achievement for the technology.
Other use cases of Blockchain for saving money
Blockchain technology could save money, as per the World Trade Organization, the use of blockchain in the industry will add an estimated $3 trillion over the next decade.
According to HSBC’s COO words, the bank is fully aware and impressed by the amount of money that is being saved and that these results go beyond a test case by proving themselves over a significant period of time and a large sum of money.
HSBC further reveals that the platform is used to coordinate payments across regions such as Americas, Europe, and the Asia Pacific. Williamson predicts that after a successful initial run the platform will welcome a larger volume of HSBC’s trades. The more participants joining the HSBC shared permission ledger and the ecosystem, the more efficient the platform will become in providing services to their clients.
HSBC isn’t the first as banks in Kuwait and the UAE have either partnered with blockchain firms for this purpose or incorporated blockchain into their systems.