Banking giant HSBC, based in the United Kingdom, has reportedly been seeking banking partners in South Korea to launch its Voltron blockchain platform in the country to enhance efficiency and transparency.
The Voltron platform gives firms the ability to process and settle trading invoices through the blockchain system. The solution is currently at the pilot stage, having been launched in October 2018 by the R3 blockchain consortium together with eight banks that included HSBC, ING, and Standard Chartered.
Joshua Kroeker, HSBC’s Innovation Director on Blockchain, said the company is planning to launch Voltron commercially in the future, as the company seeks to collaborate and share costs with Korean banks on the development of the platform.
Kroeker said he believes the decentralized system can facilitate connections and significantly reduce the time generally required for interbank operations. He added that time and transparency would help companies to better manage their cash flow and working capital.
Filing and processing trading papers generally takes five to 10 days, but can last up to 30 days. Because blockchain enables different parties to access data in real time, this period can feasibly be reduced to just 24 hours.
Béatrice Collot, Head of Global Trade and Receivable Finance at HSBC, recently paid special tribute to blockchain, saying the technology can potentially converge the supply chain ecosystem and financial ecosystem, including banks and suppliers. She also cited transparency and instantaneity as “the true strengths of blockchain technology.”
HSBC disclosed in February 2019 that FX Everywhere – the company’s proprietary blockchain solution – had cut costs for foreign exchange settlement by 25%. It noted, however, that blockchain-powered settlements represented only a small proportion of the total.
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