David Puth who was CEO of CLS until November 2018 has joined enterprise blockchain company R3 as a strategic adviser. During his tenure, CLS was involved in multiple blockchain projects.
CLS provides a centralized clearinghouse for foreign exchange with average daily volumes of $1.86 trillion in March 2019. In 2012 the Financial Stability Oversight Council designated CLS as systemically important to the U.S financial system. When trading currencies, there’s a risk that the counterparty to a trade might become insolvent before handing over its end of the deal. CLS buffers that risk by acting as an intermediary for settlement.
Alleviating this counterparty risk is one of the potential benefits of blockchain by enabling instant settlement without the need for an intermediary such as CLS.
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