The benefits of using newer technology is now being understood and applied by many traditional organizations. It’s no longer news that there are quite a number of financial institutions who are currently using different forms of Distributed Ledger Technology (DLT) for their services and core businesses.
This is something that many proponents hope will increase because as more traditional institutions increase the use of cryptocurrency and all forms of DLT, adoption for the sector is bound to increase.
This involvement of traditional institutions with new technology is an area that Ripple has been consistently trying to dominate. The firm already has a few platforms that seek to address this and make it easy for these companies to come on board.
At present, Ripplenet boasts of more than 200 different institutions all over the world which use the payment methods for fast transaction settlements and now, it’s being rumoured that HSBC, one of the world's largest financial institutions, might be considering the XRP Ledger (XRPL).
HSBC and DLT So Far
Before now, the bank has publicly stated through one representative or the other, that it has been using DLT to help improve settlement efficiency and speed of its many cross-border transactions.
However, it has not specifically named the particular platform it users to facilitate these payments. Options could include something from Ripple, Corda or a platform created by its own developers.
In August last year, Joshua Kroeker, HSBC’s Senior Growth and Innovation Manager, revealed that even though the technology is still very young, the firm is ready to do a live transaction because it will allow them to “transact using digital assets on a decentralized platform which means its peer-to-peer.” He also suggested that there will be an operational model by 2019.
In January this year, HSBC officially announced that using a solution called HSBC FX Everywhere, it had “settled more than three million FX transactions and made more than 150,000 payments worth $250 billion using distributed ledger technology (DLT).”
According to Richard Bibbey, HSBC’s Interim Global Head of FX & Commodities:
“The global cross-border nature of HSBC and its clients sees us conducting thousands of foreign exchange transactions within the bank, across multiple balance sheets, in dozens of countries. HSBC FX Everywhere uses Distributed Ledger Technology to drastically increase the efficiency of these internal flows.”
Bibbey also went further to add that the firm was looking to help all of its multinational clients who have a need for cross-border payments and supply, with HSBC FX Everywhere for better business management.
A CryptHawk (@TheCryptHawk) on Twitter recently posted about HSBC using XRPL. According to the tweet:
“$XRP – I don’t remember, did I tell you about HSBC going for #XRP Ledger soon?
As expressed earlier, this is really just conjecture and is not an official announcement by either of the parties.
Regardless, it doesn't seem like a random or uninformed proclamation. It could also help that this same account said a thing or two about the collaboration between Ripple and MoneyGram before it happened. The user then added:
“#XRP – If PR goes as planned you should get hard or wet with some good news incoming next week!”
So, even though there's no official statement about the collaboration, the idea that HSBC might be looking into using the XRP Ledger is not improbable. For now, we await an official statement.