Fnality, Finteum, and R3 Join hands to Improve FX Incompetence

Fnality, Finteum, and R3 Join hands to Improve FX Incompetence

Blockchain majors, Fnality and Finteum, have collaborated with R3 to improve incompetence in the foreign exchange swaps market.

Reportedly, they will be utilizing the R3’s Corda platform to develop global economic intraday liquidity market.

Though Forex (FX) is the single largest market in the world, its trading system is quite outdated and needs upgradation in terms of technology. The incompetent system is likely to create duplicative processes during the transactions and is time-consuming.  

The collaboration announced that the alliance would work collectively to provide interoperability between the Finteum application, which is built on the Corda platform, and Fnality’s Ethereum-based Utility Settlement Coin (USC) solution.

Finteum and Fnality 

Fnality is the firm which provides expertise in blockchain-based digital currency system for instant trading settlements. It will apparently fetch transparency and proficiency in the markets.

The Finteum technology will acquire trading data from the market accomplices, which will bring more transparency, easy data access, and share with third parties.

What does the FX system lack? 

The Forex has some significant operational anomalies due to the old fashioned prevalent market structure. FX settlement procedure needs more transparency, automation, and traceability in the trading process.

How will the partnership function?

By way of the Corda platform, the collaboration will be able to change the mechanism of the forex operations. It will collaborate with few financial entities to get more support and feedback from them while examining the improvement of overall functions.

The interoperability emphasizes on intraday mutual FX trades between the big financial organizations. The upgradation will execute the trading procedure smoothly by minimizing the settlement risks with a speedy process.  

The FX settlement process needs increased transparency and traceability. Corda is fit to deliver on both counts. It was built to be fully interoperable from day one and Fnality’s USC is a perfect example of how our platform can be used in conjunction with other system’s to answer crucial industry needs,

commented David Rutter, CEO at R3. 

Owing to the settlement risks and time ambiguity in the trading processes, Finteum co-founder Brian Nolan said,

Any attempt for a bank treasurer to execute an intraday FX swap involves settlements and time uncertainty in the current market. Intraday FX swaps are therefore an untapped source of value for bank treasurers. Large banks could each save tens of millions by creating efficiencies in their intraday liquidity.

Finteum is determined to bring technological innovations in the financial sector as well.

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