HSBC Adopts Blockchain-Powered Custody Platform

Asia Blockchain Review
December 7, 2019

HSBC Securities Services has announced that will introduce a platform on a blockchain called the Digital Vault that will allow investors to monitor stock details in real-time.

Digitizing Asset Management Processes

According to Ledger Insights, HSBC will be shifting about US$20 billion in private placement assets to the new platform by March 2020.

Currently, the international banking institution records information about custodial assets using a paper-based system. The shift to digital is preliminary, as HSBC is the custodian of over US$50 billion of private placement assets, which are only a small part of the US$7.4 trillion worth of assets under management by HSBC.

Earlier in November 2019, HSBC Singapore revealed that it is carrying out a blockchain trial in partnership with Temasek and the Singapore Exchange (SGX) that is testing out the system to service fixed income securities.

Implementations of Blockchain in Finance

Though HSBC is not the largest custodian in the global financial industry, the bank is the world’s biggest firm dealing in trade finance and has introduced several projects to develop use cases for blockchain technology.

One of the most high-profile projects that HSBC has been supporting is the Letter of Credit blockchain. Formerly called Voltron, a consortium gathering leading international banks, from Bangkok Bank, BNP Paribas, CTBC Holding and ING to NatWest, SEB and Standard Chartered, is working on digitizing legacy trade financing management.

Moreover, HSBC has been funding blockchain startups such as the Utility Settlement Coin project, which involved central bank tokenized money. However, HSBC made the decision not to extend its investment when the project evolved into Fnality.

Source: https://www.ledgerinsights.com


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Takasbank Launches Blockchain-Powered Gold Transfer Platform in Turkey
    Turkey's Istanbul Clearing, Settlement and Custody Bank (Takasbank) has launched a blockchain-powere...

    January 22, 2020

    Ernst & Young Forges Ahead with Public Blockchain
    While many organizations have chosen to develop their own private network blockchain system, Ernst &...

    January 21, 2020

    Building Blockchain Solutions for Businesses in 2020
    With numerous developments in the blockchain industry in 2019, enterprise blockchain solutions could...

    January 20, 2020

    Anticipation Builds for Tokenization in 2020
    Tokenization will likely continue to be a viable and promising technology in 2020 due to its boundle...

    January 20, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us