HSBC bank is intending to track around $20 billion in assets on a blockchain-based custody platform early next year, Reuters revealed on November 27.
As per the report, HSBC plans to move its existing paper-based records onto its Digital Vault platform by March 2020, enabling investors to monitor securities in real-time. The U.K.- based bank will explicitly digitize its private placement records, allowing the investors to keep an eye on holdings quickly.
The records are presently held in paper-based records, as indicated by the report. It tends to be “tricky and time-consuming” to access them in their present structure.
HSBC is just moving 40 percent of its records onto a blockchain, as indicated by the report. At present, the bank holds $50 billion in resources.
While utilizing a blockchain platform is designed to save expenses, HSBC “could not quantify the amount that could be saved for the bank or its clients,” Reuters stated.
Windsor Holden, an independent consultant, disclosed to Reuters that he doesn’t expect any savings will be declared before the latter half of 2021 after the platform is launched.
The bank has tested different blockchain tools for over a year now. In January, HSBC revealed it had settled about 3 million foreign exchange transactions utilizing a blockchain platform, facilitating some $250 billion in exchanges in the process. The sum incorporated another 150,000 in payments.
The bank has additionally hinted at utilizing blockchain to digitize letters of credit previously.
HSBC didn’t promptly reply to a request for comment.