Global financial services holding company BNP Paribas and major retail and commercial bank NatWest today announced that Dynamic Credit’ from CobaltFX is now live.
The official announcement, shared with LeapRate, noted that the new offering aims to simplify and streamline the allocation of credit for FX transactions between banks and improve access to liquidity.
According to CobaltFX, part of United Fintech, the move is motivated by an increasing trend of financial institutions wanting to optimise the disbursement of credit for FX trades and simultaneously improve market access and control.
BNP Paribas and NatWest have been long term partners with CobaltFX and now both companies are increasing their engagement with the Dynamic Credit product to manage credit exposures for their respective financial institutions, addressing overly manual processes as well as market access and control.
Joe Nash, Digital COO for Foreign Exchange, Rates and Commodities, BNP Paribas, said:
Joe Nash Source: LinkedIn
Industry-wide, we see that banks are adopting innovative techniques to manage credit exposures for FX trades and maintain market stability through digitalisation. CobaltFX’s solution offers a much needed improvement to the manual process of updating credit limits with interbank trading venues. By providing a standardised and digitised approach, and aggregating IT infrastructure across multiple venues, ‘Dynamic Credit’ gives banks unprecedented control to navigate fast-moving FX markets and proactively manage credit exposure.
United Fintech relaunched Cobalt as CobaltFX, three months after it became a majority owner. The British fintech also announced a digital asset division spin off planned for Q2. The company highlighted that reducing risks through simplification and streamlining of credit disbursement will be key, as CobaltFX focuses in on solving a list of “very current and real problems”.
CobaltFX’s Founder Andrew Coyne, added:
Andrew Coyne
The problem CobaltFX is solving is essentially simplifying and streamlining many of the manual processes tied to allocation of credit which creates challenges for financial institutions. I.e. leveraging tech to enhance market stability. Thus, correcting the supply of credit and at the same time deepening the availability of liquidity, CobaltFX’s Dynamic Credit technology ensures that for less credit deployed, there is more liquidity, administrative simplification and, essentially, superior market access control – the latter being a key factor for financial institutions around the world.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
