Multinational Spanish bank BBVA and its Mexican subsidiary BBVA Bancomer have announced that they are testing an FX matching application developed by Calypso Technology and R3. The application, which runs on R3’s Corda platform and is facilitated by Calypso’s cloud services, has already been used by the two banks to match a live FX trade.
“BBVA is very excited about this initiative for two reasons. Firstly, it gives us the opportunity to assess the impact of a disruptive technology such as DLT, to generate efficiencies in one of our strategic business lines. Secondly, it has the potential to set a new standard in customer experience on the servicing ground,” stated Ramon Martinez Sobrado, Global Head of CIB Operations at BBVA.
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“Calypso sees Distributed Ledger Technology as an important component of our innovative offerings to transform the post-trade processing operations. We are excited, that after successful completion of the initial PoC, BBVA, BBVA Bancomer and our strategic blockchain partner R3, have engaged in the next phase of Calypso FX Matching Distributed Ledger Technology service supported by our Cloud services,” commented Mayank Shah, Head of Strategy, Marketing and Alliances.
“Reconciliation is a major issue for banks when trading FX, with whole departments often dedicated to resolving the issues that occur during the matching process. Corda removes this issue entirely by creating a single, undisputable record of each trade. We are pleased to be working with our members BBVA and BBVA Bancomer on this pilot with Calypso and look forward to extending the initiative to other industry participants in the coming weeks,” said Todd McDonald, co-founder at R3.