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HSBC Acknowledges XRP Ledger as a Game Changer for Cross-Border Payments

source-logo  thecryptobasic.com 03 June 2023 11:11, UTC

HSBC recognizes the capabilities of XRPL in cross-border payment while highlighting its FX tool’s massive $250B transaction volume in the first year.

HSBC, the largest Europe-based bank by total assets, has referenced the XRP Ledger (XRPL) for cross-border payments in a groundbreaking acknowledgment of the transformative potential of distributed ledger technology (DLT).

The bank made the recognition in a document titled “Distributed Ledger Technology in the Capital Markets Game Changers – Future Trends in Securities Services.”

Specifically, the revelation came to light when Edward Farina, Head of Social Adoption at XRPHealthcare (XRPH), shared a screenshot from the supposed document on Twitter. The screenshot captured a section of the HSBC paper, which recognized DLT as a “game changer” in the financial industry.

HSBC, the largest Europe-based Bank 🏦 by total assets, mentions the #XRP Ledger for cross-border payments.

The Financial Institution alone handles nearly $250bn per year in foreign exchange.

It also referred to DLT as a “game changer.” pic.twitter.com/Wm2ObQ4vSj

— EDO FARINA 🅧 XRP (@edward_farina) May 31, 2023

Within the document, HSBC outlined various compelling applications for DLT in capital markets, highlighting its potential to streamline processes and enhance efficiency. The bank emphasized the role of DLT in the payments sector and its ability to facilitate end-to-end value transfers while reducing costs, operational risks, and settlement periods.

One noteworthy example in the document was the Ripple blockchain XRP Ledger, which HSBC described as being renowned for its “real-time cross-border settlements using tokens that represent central bank currencies.”

HSBC acknowledged the XRP Ledger’s capability to facilitate instant and secure cross-border transactions, transforming the traditional foreign exchange landscape.

HSBC Tool Processes $250 Billion

In emphasizing the magnitude of its operations, the document revealed that HSBC’s FX Everywhere tool had already processed over three million inter-company foreign exchange transactions, amounting to a staggering $250 billion in its first year alone.

By integrating the XRP Ledger into their operations, HSBC anticipates significant improvements in cross-border payments, offering customers faster and more cost-effective options.

The mention of XRP Ledger in such a prominent financial institution’s document underscores its increasing recognition and adoption within the traditional banking sector. Recently, XRPL crossed a significant landmark, attaining its eighty millionths closed ledger in a decade-long endeavor, as reported by The Crypto Basic last month.