On July 27, the foreign exchange trading market (forex) settlement powerhouse CLS reported it was in the final stages of testing its blockchain payment service for banks. However, while the service is reportedly set to be launched as soon as in August, the amount of players backing the project has halved since the initial announcement. As it turns out, large financial institutions are not quite ready to hand over their data to a blockchain-powered system.
Forex is a worldwide market where convertible currencies are traded and their conversion rates are determined. Albeit being decentralized, it is the largest and most liquid market in the world: In April 2016, for instance, trading there averaged $5.1 trillion per day, according to Bank for International Settlements (BIS) data. Given the fact that forex relies on over-the-counter type deals, larger participating players — i.e., international banks — strive to mitigate the settlement risk associated with their forex transactions.
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