HSBC Track $20 Billion Worth Asset by Swapping Records for Blockchain

HSBC has announced that they will shift assets of worth $20 to new blockchain-powered custody by March in 2020. This created a lot of hype in the banking sector. Though blockchain technology is proven to reliable; still no leading bank has gone that far to test this revolutionary technology.

The name of the platform with which the HSBC has collaborated for this unique venture is Digital Vault. The objective of this partnership is to provide real-time access to investors when it comes to the critical safety records bought on private markets, and this is what the HSBC told the Reuters. Moreover, the HSBC bank has taken this step to tap on the soaring interest of results-driven investors internationally.

Over the past decade, top financial institutions and leading banks worldwide have been investing big money to identify the limitless potential of Blockchain technology. They are seeking a digital ledger that can be updated instantly and transparently. However, only a few of them have been successful in developing a practical blockchain-empowered solution.

Proponents hold the belief that Blockchain technology is the future ahead for the global banking factor. According to them, Blockchain can reduce the cost of processing each transaction, by cutting down on the need of having a middleman. And, in the recent past, there have been several examples of successful implementation of the Blockchain technology in various industries.

The HSBC has ventured into this Blockchain revolutionary banking mechanism with the pursuit of digitizing paper-based records. Here, the Blockchain technology will play a central role by allowing investors to quickly and effectively have an inside look at the holdings.

As of HSBC, the private-placement records are there over the paper, and there isn’t any standardization done. Thus, this makes the entire process both baffling and time-consuming. According to HSBC, at present, they are maintaining assets worth $50 billion.