U.S forex exchange (FX) settlement giant CLS’ blockchain payment netting service has gone live today, Nov. 28. According to the the company’s press release, Goldman Sachs and Morgan Stanley are among the initial users of the service, which was built in conjunction with IBM.
The CLS Group reportedly settles an average of $5 trillion in payment instructions daily, and has members including Goldman Sachs, JPMorgan, Barclays, and Citigroup.
The company’s CLSNet, described as the “first global FX market enterprise application running on blockchain in production,” also has “committed” participation from six international entities including the Hong Kong branch of the state-run Bank of China.
The identity of the other clients lined up to use the blockchain payment netting service, which aids cashflow stability by grouping multiple payments together ahead of time, has not been revealed.
CLS had announced the impending launch at a conference earlier this month, Cointelegraph reported, with final testing running since July.
Alan Marquard, chief strategy and development officer, commented on the 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 comes as little surprise from both Goldman and Morgan, both Wall Street heavyweights having signaled an intention to directly launch Bitcoin-related products themselves.
Blockchain in payments also continues to see expansion, with efforts focused on increasing the speed, efficiency, and cost-effectiveness of cross-border payments using cryptographic tokens such as Ripple (XRP).
Marie Wieck, general manager of IBM Blockchain which helped build CLSNet, continued the narrative, adding:
“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.”