CLSNet (a blockchain platform for a currency exchange)

2018: Start of the platform

On November 28, 2018 the operator of currency transactions of CLS and IBM announced CLSNet start — the first blockchain platform for a currency exchange. Goldman Sachs and Morgan Stanley became the first users of the platform. Besides, six more organizations from North America, Europe and Asia will join network, including the Hong Kong Bank of China in the nearest future.

The CLS system which daily performs operations for the amount about $5 trillion, hopes that the CLSNet system optimizes intra day liquidity, will increase efficiency of transfers and will reduce rated risk. According to operators, they already confirmed the first transactions and successfully made the report on netting for the participating parties.

There was the first blockchain platform for a currency exchange. Goldman Sachs and Morgan Stanley the first were connected to it

The platform was created based on developments of IBM Hyperledger Fabric and had to solve first of all the main problems of the market of currency transactions — lack of proper standards and optimum level of process automation. In spite of the fact that most of participants of the foreksny market cooperate with each other on a regular basis long ago, sometimes process of a currency exchange all the same should be managed manually, and these transactions are not completely standardized. Influence of limited payment network is aggravated with the high costs for calculations connected with currencies of emerging markets despite their high relevance for participants of foreign exchange market.

CLSNet will increase efficiency of workflows on risk management and also on reconciliation of transactions in the currencies which are not used in CLS. Already for launch of CLSNet supports 120 currencies though so far representatives of the company refuse to report what volume of transactions is executed by a system. The standardized and automated payment process will lead to reduction in cost of transactions, increase in efficiency and, eventually, business growth support.^[1]

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