HSBC and Wells Fargo to settle currency trades with blockchain

HSBC and Wells Fargo are cutting out a key part of the currency market's infrastructure from some trades after the two banks agreed to settle transactions directly on blockchain technology. The move is the latest example of blockchain technology seeping into the $6.6tn-a-day foreign currency market, and resetting relationships between the big investment banks and central banks. Earlier this month, the central banks of Switzerland and France successfully tested the first cross-border payment on the blockchain as part of a series of projects around central bank digital currencies. The two banks also said they hoped to expand the system to other banks and emerging market currencies that CLS does not settle. Christine Moy, global head of Liink Onyx, the blockchain division at JPMorgan, said on a panel at the FT's Global Banking Summit that while the bank does not trade bitcoin, it has been active in researching and finding applications for blockchain technology for six years.

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