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HSBC liquidated $ 250 billion of forex transactions using blockchain in the last year, he said Monday, suggesting that heavily publicized technology is gaining traction in an industry hitherto hesitant to accept it.
The bank has sold over three million forex transactions and has made more than 150,000 payments since February using blockchain, according to a statement. HSBC would not have given data on forex transactions regulated by traditional processes, saying only that those established by the blockchain represented a "small" proportion.
However, the data represent a significant milestone in the use of blockchain by mainstream finance, which until now was reluctant to start using technology on any scale.
Blockchain is a shared database that can process and adjust transactions in minutes. Originally designed to support the bitcoin cryptocurrency, the technology does not require third parties for controls and its entries can not be changed, making it highly secure.
Banks and other finance companies have invested hundreds of millions of dollars in technology, hoping that it will simplify and reduce the costs of processes from settlements to payments.
But few banks have moved from testing to blockchain implementation in large-scale projects. Many are worried about the high costs, the uncertainty about regulation and the risk of disruption of existing systems.
HSBC claimed that its blockchain technology automated manual processes and reduced dependence on external technology.
Blockchain also reduced the risks of errors and delays, reduced costs and helped the bank optimize its balance sheet better, he said.
Richard Bibbey, the head of the bank in exchange for forex and commodities, said in a statement that the bank was studying how technology could help multinational clients to better manage forex flows.
