HSBC bank will track $10B in assets through a blockchain-powered platform
|- HSBC bank will be replacing paper records with a blockchain-based platform called Digital Vault.
- Using this platform, bank customers can access digitized records of securities that were bought on private markets.
HSBC bank will soon replace paper records with a blockchain-based platform, Digital Vault, to track $10 billion in private investments. Using this platform, bank customers can access digitized records of securities that were bought on private markets. Digital Vault reduces the time taken for customers to check, search or verify transactions in real-time. The need to contact the bank for access to information on their holdings will be eliminated. This upgrade to a blockchain platform comes as the bank expects the value of the private placement market to surge to $7.7 trillion in two years, representing a 60% increase since 2017.
Ciaran Roddy, head of custody innovation at HSBC’s securities services arm, said that interest in private placements from sovereign funds across the globe is on the surge.
With some of the yields that are on offer, we are definitely seeing an increase in demand.
The new blockchain platform is based on R3’s enterprise-grade, open-source blockchain solution Corda. HSBC bank is also planning to shift another $10 billion in private placements to its digitized blockchain-based records, making it a total of $20 billion.
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