Wells Fargo, HSBC expand blockchain FX system to include offshore yuan

Wells Fargo ( NYSE: WFC ) and HSBC ( NYSE: HSBC ) have added the offshore yuan to their blockchain-based solution that settles bilateral foreign exchange transactions, the banking giants said Thursday. The Chinese currency marks the fifth currency to be settled between the two lenders using the so-called DLT solution, which uses a shared settlement ledger that currently surrounds the U.S. dollar, Canadian dollar, British pound sterling, and the euro, the banks said. The system was launched in December 2021 and has since settled more than $200M in transactions. WFC and HSBC noted that more currencies have been planned to be added to the DLT solutions in the coming months. The move comes as a number of depository institutions make headway with integrating blockchain technology into payment settlement processes to boost transaction speed, for instance. Towards the end of May, megabank JPMorgan ( JPM ) started using the blockchain for collateral settlements .