BNP Paribas and NatWest are set to implement technology from CobaltFX aimed at simplifying and streamlining the allocation of credit for foreign exchange (FX) transactions among banks while enhancing access to liquidity.
Both banks, longstanding partners of CobaltFX, have adopted the new Dynamic Credit offering from the United Fintech unit. This move seeks to manage credit exposures and improve manual processes, as well as enhance market access and control.
Joe Nash, the digital COO for FX, rates, and commodities at BNP Paribas, commented, “CobaltFX’s solution provides a significant improvement to the manual process of updating credit limits with interbank trading venues.” He added, “By delivering a standardized and digital approach and aggregating IT infrastructure across multiple venues, ‘Dynamic Credit’ empowers banks to effectively navigate the fast-paced FX markets and proactively manage credit exposure. This represents a crucial advancement for credit providers, leveraging the latest technological innovations.”
Cobalt was acquired by United Fintech in December and was subsequently rebranded as CobaltFX in March, which included the separation of its digital asset business into a new venture on the same platform.