The Blockchain payment netting service of CLS, the US Forex Exchange settlement firm, is now live from November 28, 2018. As per the press release published by CLS, the Blockchain-based payment netting service was built in partnership with IBM. CLS also claims that American investment behemoths such as Morgan Stanley and Goldman Sachs are amongst the first users of the service. CLS group has kept the identity of other clients a secret for the time being.
The New York-based CLS group is a specialist US financial institution that provides settlement services to its members in the foreign exchange market. As per the press release the group settles as much as USD 5 trillion in payment instructions on a daily basis. Its members include Citigroup, Barclays, JPMorgan, and Goldman Sachs.
The company’s Blockchain-based payment netting services is launched by the name of CLSNet. The press release states that it is the first worldwide foreign exchange market enterprise application that runs on the Blockchain technology. The Blockchain-based application facilitates the stability of cash flow by grouping together multiple payments well ahead of time.CLSNet has committed partnership from global entities such as state-led Bank of China’s Hong Kong branch.
While the application has been running with final testing since July, 2018, the launch of CLSNet was announced at a conference only earlier this month. The Chief Strategy and Development Officer, Alan Marquard, was quoted as saying in the press release:
“A standardized and automated payment netting process will lead to improved intraday liquidity, reduced cost, improved operational efficiencies and ultimately support business growth.”
The decision of Morgan Stanley and Goldman Sachs to join CLSNet does not come as a surprise considering both the Wall Street giants are inching towards the launch of Bitcoin-related products.
Blockchain Technology is being increasingly deployed in payments systems with an effort towards enhancing speed, increasing efficiency, and reducing costs for trans-border payments.
The General Manager of IBM Blockchain, Marie Wieck, who also helped in the development of the CLSNet application is quoted as saying about Blockchain Technology:
“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.”