LONDON and NEW YORK, Dec. 16,
2021 /PRNewswire/ -- HSBC and IBM (NYSE: IBM) today
announced the successful test of an advanced token and digital
wallet settlement capability encompassing direct transactions
between two central bank digital currencies (CBDC) in a hybrid
cloud environment.
Several previous initiatives have individually demonstrated
support for CDBCs, securities and/or foreign exchange. The
experiment, which was designed and implemented within a four-month
period, successfully executed across ledgers in support of such a
complex multi-asset transactional scenario.
The experiment successfully tested an end-to-end transactional
lifecycle covering CBDCs (minting and allocation), eBonds (Delivery
Versus Payment (DVP) across primary issuance and secondary trading
and coupon payments), and foreign exchange (pricing and Payment
Versus Payment (PVP) settlement). It was conducted in a hybrid
cloud environment incorporating public and private clouds and on
premise data sources. Distributed ledgers based on IBM's
Hyperledger Fabric and R3's Corda were integrated using IBM
Research's Weaver interoperability tool.
The project was initiated by Banque de France - a leader among central banks in its
breadth of CDBC experimentation - as part of a multi-pronged
program to explore the potential of the digital Euro. HSBC, one of
the world's largest foreign exchange banks, and IBM, a leading
provider of consulting services and technology to the financial
services industry, were chosen from a diverse field of
highly-regarded financial and technology applicants.
Mark Williamson, Managing
Director GFX eRisk, Partnerships & Propositions at HSBC, said:
"We were pleased to be selected by Banque de France to conduct this exciting experiment.
Our collaboration with IBM on this initiative has resulted in this
milestone of streamlining front-to-back securities and foreign
exchange DVP and PVP settlement processes. Interoperability across
different DLT's and technologies was key is demonstrating how to
save time, reduce market risk and improve security for transactions
between central banks, commercial banks and in time our clients
around the world."
"Our collaboration with HSBC, a leader in foreign exchange
trading, and Banque de France, a
pioneer in the use of central bank digital currency, to create a
foreign exchange settlement capability that has the potential to
reduce costs and improves security, is an important accomplishment
that stands to benefit the global financial services industry
broadly," said Likhit Wagle, General
Manager Global Banking & Financial Markets at IBM. "As central
banks around the world begin to explore the potential for CBDC to
bring greater transparency and security to financial transactions,
this initiative provides a comprehensive roadmap."
Media contacts
HSBC
Paul Smith
+44 20 7991 4867 / 07467 444817
Paul.a.smith@hsbc.com
IBM
Mary Ellen
Higgins
+1 781.789.1911
maryellen.higgins@ibm.com
HSBC Holdings plc
HSBC Holdings plc, the parent
company of HSBC, is headquartered in London. HSBC serves customers worldwide from
offices in 64 countries and territories in its geographical
regions: Europe, Asia, North
America, Latin America, and
Middle East and North
Africa. With assets of $2,969bn
at 30 September 2021, HSBC is one of
the world's largest banking and financial services
organisations.
IBM
To learn more about IBM's insights and solutions,
visit www.ibm.com/financial-services.
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content:https://www.prnewswire.com/news-releases/hsbc-and-ibm-successfully-design-and-test-interoperable-multi-ledger-central-bank-digital-currency-securities-and-foreign-exchange-settlement-capability-301446729.html
SOURCE IBM