CLS and IBM start a blockchain service for the market Forex

The settlement giant CLS finishes testing of the banking payment application based on technology of a blockchain. Service will be started this summer, and at least seven banks have to log in in the first months.

CLS together with IBM work on introduction of service of payment network with a binding to a blockchain. The system is customized on inclusion of technology in bank IT systems for the purpose of increase in level of standardization in the global foreign exchange markets and also for cutting of costs for this process.

Today, according to large players, in the world foreign exchange markets there is no standardization – they are forced to finish process manually that often leads to separate approaches, clearing and also to higher expenses.

CLS plans to offer two options of connection to service CLSNet, providing direct and intermediate link through the supplier of financial messages of SWIFT.

The representative of CLS has explained that clients will rely on SWIFT at the first stages while the direct hosting will be offered as “service which functionality continues to grow in process of its acceptance by clients and development of a blockchain”.

While about seven banks are ready to test the forthcoming service, it is only a half of those who originally supported the project.

According to the specialist in development of initial strategy of CLS Alan Marquard, some of large bank participants watchfully treat use of a blockchain directly as the technology is still insufficiently checked in the field of calculation and storage of securities.

“Financial institutions can’t just establish a part of the software as at first they need to gain operational knowledge for ensuring adequate protection of confidentiality”, – he has explained.