HSBC Bank has plans to track $20 billion in assets on a custody platform based on a blockchain by March 2020.
According to a Reuters report, the bank is looking to swap its paper-based records with the Digital Vault platform, which will allow the real-time tracking of securities. By digitizing the private placement of records, the UK-based bank will make it easier for its investors to check their holdings.
Paper-Based Records Will No Longer Be an Option
As the report says, keeping the records on paper up until now makes it tricky to access and takes a lot of time. It seems like HSBC will only transfer 40% of its records onto the blockchain. At the moment, the bank holds $50 billion worth of assets.
Savings Expected at the End of 2021
Using a blockchain-based platform can save HSBC a lot of money, but at the moment the bank can’t quantify how much could be saved. Independent consultant Windsor Holden said he expects the savings to be announced late in 2021, as soon as the platform has got a chance to work.
HSBC Has Been Experimenting with the Blockchain for Over a Year
It’s been a year since HSBC is experimenting with blockchain tools. Back in January 2019, it has announced the settlement of 3 million foreign exchange transactions on a blockchain platform, transactions that traded about $250 billion and included 150,000 other payments. More than this, it has given signals that it may be using a blockchain for digitizing letters of credit.