Baton Systems, the company behind the Core-FX distributed ledger
technology, or DLT, said on Monday the two banks are using the
platform to settle FX trades using real currencies and real
accounts, in less than three minutes.
It avoids passing the trades through CLS, a third-party bank
widely used in the sector for settling FX trades, Baton said,
adding that such rapid settlement directly between the two banks
cuts exposure and settlement risks.
Last month SIX Swiss Exchange's new blockchain based digital
trading and settlement arm issued and its first bond.
Speedier settlement means tying up costly capital and liquidity
for a shorter period to insure against a trade going wrong.
(Reporting by Huw Jones; editing by Jason Neely)
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