Standard Chartered has invested in foreign exchange (FX) post-trade infrastructure provider Cobalt, joining Citi as the second client-side backer of the blockchain-based network.
The investment comes after Standard Chartered signed up to use the Cobalt infrastructure in February, with the bank billing the platform as a core part of its FX operations.
By creating a single version of a trade and checking credit in real-time Cobalt allows for dynamic credit allocation across clients and counterparties, cutting operational costs and reducing credit, settlement and operational risk.
Bank users can white-label the platform under their own brand for client-facing operations.
Gareth James, macro COO from Standard Chartered, comments: “We see Cobalt as being a core part of our FX operating platform, enabling Standard Chartered to reduce risk and costs by automating manual processes across the bank and therefore improving services to our clients. This investment shows our confidence in the platform and we look forward to continuing to grow our relationship with Cobalt.”