DLT Is Promising for FX Settlement, but Not without Challenges - Baton Systems
Potential of Distributed Ledger Technology (DLT) in FX Markets
The article discusses the potential of distributed ledger technology (DLT) to reduce settlement risk in FX markets. While there have been a number of projects exploring this possibility, only one is currently live: Baton Systems’ Core FX DLT, which is used by HSBC’s FX Everywhere platform.
Insights from Baton Systems
Alex Knight, the Head of EMEA at Baton Systems, believes that DLT-based solutions are a promising way to enable riskless settlement in a broad range of currencies. He notes that more and more financial institutions are adopting these solutions to manage settlement exposure across a wider range of currencies.