HSBC puts $ 10 billion worth of customer assets on Corda blockchain

HSBC puts $ 10 billion worth of customer assets on Corda blockchain

HSBC Bank posted $ 10 billion private placements on Corda R3 blockchain. Bank customers can track assets in real time through the Digital Vault blockchain platform.

Earlier, HSBC announced that $ 20 billion worth of asset records would be posted on the platform by March. HSBC said the platform’s implementation was slowed by efforts to expand the platform’s functionality due to high customer interest.

“We are confident that we will be able to significantly increase the volume of records posted on the platform from new and existing customers over the next 12-18 months,” said Ciaran Roddy, head of custodial innovation and strategic initiatives.

HSBC is now focusing on assets that have yet to be digitized, as well as on stock exchange tokens and traditional assets that can be divided into parts. According to Roddy, the bank also observes the need for customers to use tokens throughout the life cycle of securities, and tokens, which are a single basket of assets.

The bank uses the blockchain, and not the traditional database, because it plans to tokenize closed placements of securities after it digitizes them. As part of a closed placement, securities are sold among a predetermined circle of investors at a price previously agreed with them.

Unlike other corporate initiatives, HSBC did not primarily assess the possibility of reducing costs, but focused on assessing “improving internal efficiency.” However, Roddy said that the main goal of the bank’s cooperation with Corda is to gain access to information in real time.

“This is the case when we are working for the future, as the blockchain is becoming more and more popular. In addition, we also help save customers time and money by providing them with self-service tools and eliminate the need to contact us for information, ”he said.

Tokenization would allow the bank to introduce tools such as smart contracts. However, the bank first needs to attract securities issuers to its side. In addition, regulators must recognize tokens as legal, legally sound and transferable assets. Customers can access the Corda-based Digital Vault platform through their HSBC online accounts.

“They can select securities and gain access to the entire list of documents that we have stored regarding this particular transaction,” Roddy said.

Clients can also provide access to the system to third parties, for example, regulatory authorities and auditors. Some customers have already granted access to the system to their asset managers. According to Roddy, the bank is trying to prepare in advance for a world in which financial institutions choose tokens as the best way to issue assets.

“We see a number of traditional exchanges using DLT,” he said. “HSBC is a clearing member and depository, and we want to be able to support our customers who want to complete transactions in the token markets.”

The Digital Vault project is not the first blockchain initiative of the bank. Recall that last September HSBC held
the first transaction of the letter of credit in RMB on the blockchain.

HSBC puts $ 10 billion worth of customer assets on Corda blockchain

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