HSBC to Enter Blockchain Space with $20 Billion Deployment
As time goes on and blockchain technology advances, businesses and corporations are turning to the relatively new innovation for many different reasons, such as security improvements and money-saving methods. Now, it seems the HSBC, one of the biggest banking and financial services organizations wants to get involved with a whopping $20 billion deployment.
HSBC plans to move $20 billion of their assets to a blockchain-based custody platform by March 2020. This is a vast improvement to their old system as it means ensuring all private placements become digital, removing the need for paper-based records as this is an outdated system.
Digital Vault, HSBC’s new platform will reduce the time it takes for investors to make queries on holdings, as well as giving investors real-time access to their records.
As HSBC hold $50 billion in assets, this new system will be taking 40 percent so it’s a big leap of faith for the organization.
Private placements of both debt and equity are becoming more popular, therefore banks need to start adopting a more modern system that will keep track of records more efficiently and securely.
This decision is being called the biggest deployment to blockchain technology ever, therefore it’s a huge step in the right direction for the space. However, it will not be a fast process and may take time to see results.
“I wouldn’t expect to see huge savings, or huge efficiencies announced in the first year to 18 months,” said Windsor Holden, an independent consultant of blockchain and cryptocurrency.