Wells Fargo and HSBC Bank Plc agree to use blockchain technology for the settlement of foreign exchange transactions, according to a report by Businesswire on Monday.

  • The deal will involve Wells Fargo and HSBC to use a shared settlement ledger to process US dollar, Canadian dollar, British pound sterling, and Euro transactions with plans to extend the platform to finalize extra currencies in the future.
  • The arrangement will enable both parties to use Payment-vs-Payment (PvP) settlement netting to reduce settlement risks and related costs of processing FX transactions.
  • Mark Jones, co-head of Macro, Wells Fargo Corporate & Investment Bank, stated that they will use blockchain technology for the first time in settling cross-border payments.

The use of blockchain technology provides the banks with ongoing real-time transparency of settlement positions for matching FX transactions in the selected currencies. WFC down -2.49%, HSBA down -1.29%