UK Bank HSBC Looks for South Korean Banking Partners for Voltron Invoice Trading Blockchain Platform
The banking giant HSBC is currently seeking new partners in South Korea to launch its Voltron blockchain platform there, according to a new report made by the Korea Times. Voltron is a new platform that gives companies the chance to process and settle invoices using the blockchain technology.
Voltron’s original launch was in October 2018. The technology was created by R3 and a group of eight banks, including HSBC and other important banks like ING and Standard Chartered. At the moment, the initiative is currently in its pilot stage.
Joshua Kroeker, the Director of Innovation and Blockchain at HSBC, said the goal of the bank is launch Voltron commercially in the “near future” without citing any dates. HSBC is set to establish connections with local Korean banks first and then prepare the field to launch its blockchain in the country.
According to Kroeker, the blockchain technology and decentralization can be very important for the reduction of the time that a bank requires in order to make operations with other banks. So, the main impact of using this new technology would be to reduce the time of the transactions.
Also, transparency would be very important as well, as everything that you do on a blockchain stays there forever and anyone with access to this information can see all the transaction records.
As noted by the Korea Times, filing and processing trading papers can take up to 5-10 days, but the process can easily be reduced to 24 hours with the help of the blockchain and other similar technologies.
HSBC And the Blockchain
HSBC, as well as some other banks, is entering the blockchain wave. Earlier this year, the Head of Global Trade of the bank, Beatrice Collot, has affirmed that the blockchain technology has the potential to converge the financial ecosystem with the supply chain ecosystem and that this is one of the biggest advantages of the new technology.
According to her, the speed of the transactions and the transparency that they have also very important factors that show the strength of the blockchain.
Last month, HSBC has revealed that its FX Everywhere blockchain solution helped the bank to cut 25% of its exchange trade settlement costs.