Blockchain's Main Strengths Are Transparency and Instantaneity: HSBC Exec

Transparency and instantaneity are the main strengths of blockchain technology, an HSBC executive claimed in an interview with French business and tech journal L'Usine Digitale, Feb. 4.

According to Collot, blockchain is poised to transform global trade finance by bringing together all stakeholders and allowing information to be shared in a more transparent way.

Specifically, Collot stated that blockchain has the potential to converge the two main ecosystems involved in trade finance - the financial ecosystem, which includes banks and suppliers, and the supply chain ecosystem.

"Thus, transparency and instantaneity are the true strengths of the blockchain, and should generate not only significant time savings and increased security, but also significant [financial] savings."

Collot further noted what she sees as the three major blockchain platforms currently in use, naming blockchain consortium R3's Corda, Ethereum and IBM-supported Hyperledger.

Listing blockchain platforms, the exec further noted "[b]ut in reality, there are hundreds.

The HSBC executive also mentioned that the bank is actively participating in blockchain trade finance platforms We.trade and eTradeConnect, as well as the Corda-powered Voltron trade project.

Launched in October 2018, the Voltron project intends to apply blockchain to the process of transacting letters of credit.

In mid-January, HSBC revealed it had settled $250 billion in foreign exchange trades using blockchain in 2018.

The bank's blockchain platform, dubbed "FX Everywhere," has reportedly processed 3 million transactions and 150,000 payments since its launch in February of last year.