Giant powerhouse HSBC Bank Plc, one of the largest banks in the world has come out to verify the hype surrounding the implementation of blockchain technology after revealing that it has significantly reduced its incurred costs on a global scale.
Blockchain technology’s offer of a decentralized database boasting credible efficiency, speed and security have been publicized over the past few years now, but critics and skeptics have been quick to discard it as initial excitements and exaggerations. Although the tide has obviously turned with influential financial giants such as JP Morgan and Ali Baba already pushing for blockchain patents on their own, early excitements before practical tests have tended to fizzle out almost as quickly.
After making tests and proving the success of one or two transactions on a blockchain, financial institutions have been reluctant on implementing on a global stage. HSBC, however after taking the brunt early this year, are now revealing the benefits.
Faster and Cheaper
The Chief Operating Officer of FX cash trading and risk management, Mark Williamson told Reuters that HSBC Bank Plc. since its implementation has reduced the costs incurred in settling foreign exchange trades by a quarter via its new blockchain-based system.
The London based financial services giant which has more than 750 offices in over 80 countries all over the world processes more than 4000 trades on its ‘FX Everywhere’ system every 24 hours. Williamson describes the new benefits of its blockchain based system, crediting HSBC for moving forward beyond tests and ‘proof of concept’ trades. According to him, the significant savings that its new system brings along with removing unnecessary inefficacies is proof that blockchain technology is no joke.
“We’re able to demonstrate that this is not a one-off proof of concept or just one or two trades,” he said, with transactions worth more than $350 billion being settled effectively on ‘FX Everywhere.’
With HSBC settling transactions worth billions of dollars everywhere, the financial giant has defied the tentative approach that other ‘institutional enthusiasts’ are adopting towards the underlying technology behind cryptocurrencies. Williamson has suggested HSBC is not considering reclining on their oars, and are planning to move rapidly on further blockchain developments.
“The more participants that you have joining the HSBC shared permissioned ledger and the ecosystem, the more efficient we’re going to become in providing services to our clients,” Williamson said.