Last December, HSBC and Wells Fargo announced they would start using a blockchain-based platform that builds on HSBC’s FX Everywhere to settle bilateral foreign exchange transactions. By that stage, HSBC had already used the solution to settle $2.5 trillion in trades within the HSBC group. The platform runs on Baton Systems distributed ledger technology (DLT), and FX settlements is just one of its post-trade solutions.
Baton Systems has big ambitions for its network as a decentralized financial market infrastructure (dFMI), and it’s already making considerable progress by processing an average of $15 to $20 billion in transactions daily, which is growing rapidly.
That figure includes another of Baton’s solutions, Core Collateral, that’s used to manage margins for exchange-traded and cleared FX derivatives. Users include JP Morgan and Citi, and the platform is linked to eleven CCPs, including ICE Clear Europe, LCH, CME, Eurex and SGX.
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