Goldman Sachs and Morgan Stanley go live with new blockchain-based payment software from CLS

By Harry Menear
FX settlementutility CLS has gone live with its blockchain-powered payment netting service CLSNet. Financial giants Goldman Sachs and Morgan Stanley ar...

FX settlement utility CLS has gone live with its blockchain-powered payment netting service CLSNet.

Financial giants Goldman Sachs and Morgan Stanley are among the software’s first users, with “six more participants from North America, Europe and Asia, including Bank of China (Hong Kong), committed to joining in the next few months”, Coindesk reports.

CLS developed its new blockchain-based system in conjunction with global business IT firm IBM.

CLSNet “runs on the Linux Foundation’s Hyperledger Fabric blockchain framework”, Finextra reports. This is the third blockchain platform powered by IBM tech to go live this year, along with food-tracking platform IBM Food Trust and trade finance software we trade.

According to Finextra, “the new platform is intended to reduce the post-trade risk present in settling foreign currency trades in emerging markets.”

Alan Marquard, chief strategy and development officer at CLS said: “A standardised and automated payment netting process will lead to improved intraday liquidity, reduced cost, improved operational efficiencies and ultimately support business growth.”

“With CLSNet now in production with two of the world’s largest banks, for a major market function, it is a testament to the ongoing maturity of blockchain technology and the value that it can deliver in practice,” Marie Wieck, general manager at IBM Blockchain, told the press.

Share
Share

Featured Articles

Pay Later: Does Apple's latest offering threaten BNPL?

We ask several industry insiders whether Apple Pay Later, the tech firm's foray into BNPL, threatens the market and risks marginalising smaller players.

Is Launching a Fintech Unicorn Easier than Ever Before?

With new unicorns in the fintech space emerging every week, we take a look at the traits that enable companies to scale at pace

Why BaaS is transforming the financial services space

We look at the latest changes in the BaaS space, taking into consideration new technologies, marketplace demands and changes in the financial landscape

Wealth management trends and the ‘new normal’

Financial Services (FinServ)

Innovation is driving fintech, Shuki Licht, Finastra CEO

Financial Services (FinServ)

SIX SME Banking Trends that are Disrupting the Space

Banking