HSBC, one of the largest, internationally recognized banks, will be using a blockchain custody platform to start tracking more than USD 20 billion worth of digital assets.
The news of the new platform was announced in a Reuters publication. The official start date of the project is yet unknown; however, HSBC is looking to deploy the platform before March next year.
Blockchain custody platform
The blockchain custody platform, called Digital Vault, will aim to give investors real-time insights into the records of privately purchased securities.
The main goal of the new platform will be to become the digital copy of tons of paper records currently kept by HSBC.
If this project turns out to be a success, HSBC will become one of the first banks to implement blockchain technology on such a global scale.
The main advantages of the Digital Vault are its increased security and efficiency. With the blockchain custody platform, investors will have easier access to essential processes. For example, making checks or querries about certain assets and entities will become several times faster, through the digitization of paper records.
In January this year, HSBC reported that it had completed blockchain-based foreign transactions worth more than USD 250 billion. Seeing the success of this technology, HSBC is now looking to improve its investment services as well.
With the successful introduction of a blockchain custody platform, HSBC will set the norm and will invite blockchain technology into the banking industry permanently. Hopefully, other big financial institutions will follow suit and work on blockchain-based solutions.
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