HSBC, one of the largest private banking institutions in the world, is making a significant push into the blockchain industry, as it is eyeing a massive asset transfer by the beginning of next year. According to a November 27 report from news medium Reuters, the banking giant is planning to move up to $20 billion in assets on to Digital Vault, a blockchain-based custody platform, by March 2020.
#HSBC swaps paper records for blockchain to track $20 billion worth of assets:
The new #blockchain-based custody platform #DigitalVault will give investors real-time access to records of private placements typically held on paper.@ReutersUK: https://t.co/fhpQconiuf #DLT pic.twitter.com/RfmNz7bYI9
— Urs Bolt | bolt.now 🇨🇭 (@UrsBolt) November 28, 2019
Enhancing Records and Operational Efficiency
By taking advantage of this platform, the bank is hoping that it will get to digitize paper-based private placement records, thus increasing standardization levels and enhancing efficiency across its operations and the investment banking space.
Private placements are currently being conducted on paper, and apart from the lack of standardization that this process has been associated with, access to documentation can also be time-consuming and cumbersome. Blockchain, as the company claims, will be able to help with all this.
As Reuter’s states, HSBC is expecting a surge in the global volumes of private placements, with the company looking at a 60 percent increase in the metric and a $7.7 million peg by 2022. However, while it could provide an accurate estimate, the bank is also expecting that Digital Vault will help provide significant savings to it and its customers.
More specifically, the Digital Vault platform will help investors to maintain real-time tracking for the securities they purchase on several private markets.
Blockchain Continues Its Integration With Finance Giants
All through 2019, blockchain technology has continued to find ways to penetrate the financial space. From helping companies to automate records and facilitate payments, and structure their processes, companies have fallen head over heels for this disruptive technology.
Why is it imperative for financial institutions to adopt AI and #blockchain intelligent technologies? To stay relevant in the experience economy! @FalkRieker shares more on banking in this @TheBanker video series https://t.co/aaETidG6Zg @kimber_long pic.twitter.com/Fp7CQ9EMIX
— SAP Banking (@SAPBanking) November 28, 2019
Earlier today, Big Four auditing and advisory firm KPMG announced that it had launched a blockchain-based track and trace platform that it will be using across its markets in China, Australia, and Japan.
Dubbed KPMG Origins, the platform was built to help enhance transparency and traceability in several industrial processes, including but not limited to manufacturing, agriculture, and the company’s core financial services.
However, while the platform is being launched today, the firm confirmed that it had been running pilot implementations with several clients in these countries as well. Spurred by the success of these programs, the company went on to launch the platform fully.
Besides blockchain, KPMG Original also incorporates several innovative technologies, including the Internet of Things (IoT). With all these, the platform is hoping to improve supply chain processes, while also improving communication between trading partners and end-users and taking out any overly complex processes.
Sadly, these firms haven’t shown the same level of appreciation for cryptocurrencies. Barring JPMorgan Chase and the JPMCoin, major Wall Street firms have been slow to adopt crypto assets into their operations. This trend doesn’t seem like it will change before the year closes out.