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Transparency and verification of holdings and reduced exposure to credit are given. It

ensures more open and stable real-time transactions at the trading stage and provides

automated reporting.

Monitoring of consortium accounts: The avoidance of the diversion of funds

is the main concern of banks today. The borrower transfers funds from one bank to

another, and the banks are not aware of the final use of the funds. Because of the

non-existence of the central body, the safe and accurate monitoring of the movement

of money between different accounts held by the borrower through different banks

and financial institutions has not been operationally feasible; it has thus become

one of the challenging areas for banks. An integrated approach between banks and

financial institutions is required, enabling them to track money movement and detect

process anomalies. By allowing banks and financial institutions to have visibility of

the money movement and tracking the end-use of borrowed funds, Blockchain will

help solve the issue, thereby helping to improve the monitoring mechanism.

Cross-border transfers: The processing of foreign payments or cross-border

payments requires several steps, and it is very difficult to escape from cyberattacks

in this course of action. Under the Blockchain, Ripple technology is a distributed

ledger used by banks to make foreign transfers simpler and quicker and safe and

stable.

FX trading: Different records of currency exchange for sellers, buyers, clearers,

brokers, and various third parties are required in the current banking system, and

continuous reconciliation across multiple systems is required. Multiple trade records

can be extracted using Blockchain for all these actors, and a common view of trade

can be offered that frees up resources at the back and mid-level, leading to continuous

reconciliation across multiple structures.

Trade finance: Companies introduce Blockchain in trade finance to replace

paper-based letters of credit for distributed ledgers. That helps all parties involved

in the transaction: exporters, importers, and banks, to exchange information on

their network. Without the participation of a third party, a trade agreement may

be implemented automatically. From days to hours, it reduces time.

5.2

In Financial Services

With digital innovation in the financial sector, examples of Blockchain in foreign

payments have already been introduced, benefiting banks in terms of cost savings

and shortening processing times. The cryptocurrency was also initially developed

worldwide to side-step key control systems. It will open up opportunities for creative

legalized landscapes and structures and even more customer-centric and user-friendly

exchange and business models to switch to the Blockchain for financial solutions.

The following are a few uses and use cases in financial transactions:

• Cross-border transactions are one of the world’s most common blockchain appli-

cations. The flow of funds in the centralized system has always been slow and