Monday, September 23rd, 2019, what a week we have ahead of us. SIBOS has started and Ripple has an amazing looking booth set up, BAKKT has launched last night and already traded 18 Bitcoin and now we get news from one the largest banks in the world that they believe the XRP Ledger is a GAME CHANGER. Not my words folks, HSBC words. 1st covered by the Daily HODL but a must-read for all XRP fans.
HSBC has put out a new institutional grade report and they are calling the XRP ledger a game-changer. HSBC is making it known to all institutions that the XRP ledger could help change the existing market structures. After all, isn’t this the goal of what Ripple has set out to do? Put a dent in the universe. Not my words, Ripple’s words.
HSBC report mentions XRP and the XRP ledger stating how the ledger provides real-time cross border SETTLEMENTS, using tokens that represent central bank currencies. Quoted below the exact section from the report.
Payments. DLT can streamline end-to-end value transfers, reducing costs, operational risks and settlement periods. For example, Ripple’s XRP ledger provides real-time cross-border settlements, using tokens that represent central bank currencies. In foreign exchange, HSBC’s FX Everywhere tool processed more than 3m inter-company FX transactions worth $250bn in its first year
In HSBC latest report, they analyzed how DLT technology could help lower the cost and risk in the finance world. This is exactly what we need. We needed the XRP ledger about 50 years ago! Quoted from the report:
“DLT can streamline end-to-end value transfers, reducing costs, operational risks and settlement periods. For example, Ripple’s XRP ledger provides real-time cross-border settlements, using tokens that represent central bank currencies.”
HSBC analyzes how distributed ledger technology (DLT) could lower costs and risks in the world of finance. HSBC then goes over the potential impact of DLT as a while and they cite in the report a long list of potential applications for the emerging world, and what do we see listed? R3 and Corda. What is the first settlement rail on R3/Corda: Yes you guessed it XRP.
From the report:
“DLT’s ability to establish a ‘single version of the truth’ allows it to cut across corporate boundaries and existing market structures. One of the most obvious applications for DLT is as a single asset register for an asset manager or broker-dealer. This ‘golden source’ would eliminate internal reconciliations, enhance capital efficiency and give clients or regulators controlled access to real-time data…
Even more ambitiously, mutually-operated ledgers could transform clearing, settlement and reporting for OTC securities and derivatives markets. That is the aim of Corda, an adaptable DLT platform created by the R3 consortium, of which HSBC was an early member. As well as transforming operational efficiency, such a ledger would release huge amounts of capital by reducing settlement periods and giving users a single view of the location and eligibility of collateral assets.”
“Of course, DLT is not going to replace current capital markets platforms overnight. Many practical hurdles to widespread adoption still remain to be overcome, as significant and healthy scepticism persists – a natural response to DLT’s technical complexities. Even so, we expect the next two years to see more and more organizations derive growing benefits from a range of DLT applications.
DLT will become an increasingly viable option in many firms’ technology toolkits. As adoption grows, more and more organizations will begin judging DLT on its commercial merits, rather than as a theoretical concept. In our view, every investment firm should take an active interest in DLT, even if they don’t wish – for now – to take an active role in development.
We believe the next few years will see DLT developments accelerate. As adoption grows, more firms will view it as a mainstream commercial proposition instead of a technical curiosity. Engagement with regulators, developers and other partners will become ever more important to overcoming potential obstacles.”
Here is the link to the full report put out by HSBC: