The two banks will use blockchain technology to reconcile and pay out on deals in dollars, sterling, euro and Canadian dollars between them, using HSBC’s FX Everywhere platform. The agreement means they will bypass CLS, the nearly two-decades-old utility that central banks urge market participants to use to neutralize the risk of certain trade failures.
“When people think of a bank in crypto the first thing they think is: are you doing custody, are you trading spot? We don’t . . . but we’ve been supporting the crypto ecosystem in [different] ways,” she said.