cryptoknowmics.com
The blockchain-based system that Wells Fargo & Company (WFC) and HSBC Bank plc are utilizing to resolve bilateral foreign exchange transactions will now handle offshore yuan (CNH) transactions, they revealed today.
Offshore Yuan - Fifth Currency to Resolve Ledger
The offshore yuan is the fifth currency to be resolved between two banks utilizing a similar settlement ledger, which also includes the euro, British pound sterling, Canadian dollar, and US dollar at the time. In the coming months, HSBC and Wells Fargo intend to add more currencies to the shared DLT system, which they launched in December 2021 and have already resolved over $200 billion in transactions.
Increased Capabilities of CNH
Vince Hindman, global head of Rates and FX Solutions, Wells Fargo Corporate & Investment Bank, stated that the addition of CNH to the platform's capabilities has increased its capabilities and allowed for a reduction in risk in the payment resolution process. The partnership demonstrates the ability to seek out cutting-edge technologies and implement them in a way that improves their current framework and ultimately serves the client's needs. The system is based on HSBC-exclusive CORE distributed ledger technology from Baton Systems, inspired by blockchain technology. In recent years, several of the largest banks worldwide have begun using blockchain technology in procedures like clearance and settlement.