BNP Paribas and NatWest go live with CobaltFX’s Dynamic Credit solution for allocation of FX transaction credit

New solution will help the two firms manage credit exposures for their respective financial institutions, addressing ‘overly manual processes’.

BNP Paribas and NatWest are going live with Dynamic Credit from CobaltFX, part of United Fintech, to simplify the allocation of credit for FX transactions between banks and to improve access to liquidity.

According to CobaltFX, the move is indicative of a trend among financial institutions seeking to optimise the disbursement of credit for FX trades and to improve market access and control.

BNP Paribas and NatWest have both been partners of CobaltFX over the years and by increasing their engagement by going live with Dynamic Credit, the two firms will manage credit exposures for their respective financial institutions, addressing overly manual processes.

“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,” said Joe Nash, digital COO for foreign exchange, rates and commodities at BNP Paribas.

“This is a very important step in delivering a solution for credit providers, taking full advantage of new technical advancements.”

Three months after United Fintech acquired Cobalt, a relaunch of the firm to CobaltFX was announced – along with a forthcoming digital asset arm – which chief executive Marc Levin described as a return to its roots for the FX business.

United Fintech stated that reducing risks through simplification and streamlining of credit disbursement will be paramount as CobaltFX aims to solves pain points within the FX industry.

“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,” said Andrew Coyne, founder of CobaltFX.

“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.”