Facebook X (Twitter) LinkedIn Telegram
    • About
    • Advertise
    • Submit Press Release
    • Contact
    Facebook X (Twitter) LinkedIn Telegram
    BlockonomiBlockonomi
    • Prices
      • All Coins
      • Bitcoin Price
      • Ethereum Price
      • Ripple Price
      • EOS Price
      • Litecoin Price
      • Monero Price
      • Binance Coin Price
      • Bitcoin Cash Price
      • Chainlink Price
      • Cardano Price
      • Stellar Price
      • Tron Price
    • Sections
      • All
      • Analysis
      • Bitcoin
      • Ethereum
      • Education
      • Trading
      • Buying
      • DeFi
      • NFTs
      • Metaverse
      • Exchanges
      • Brokers
      • Guides
      • Gaming
      • Privacy
      • Business
      • Finance
      • Fintech
      • Regulation
      • Security
    • Claim Free Crypto!
    • Gamble With Crypto!
    • Easily Buy Crypto!
    Home / About / Advertise / Submit Press Release
    BlockonomiBlockonomi
    News

    HSBC to Use Blockchain to Track Billions Worth of Assets

    Nick ChongBy Nick ChongNovember 28, 2019No Comments3 Mins Read
    Telegram Twitter LinkedIn WhatsApp Facebook Email
    HSBC India Blockchain
    Share
    Facebook Twitter LinkedIn Email Telegram WhatsApp

    While incumbents of the world of traditional finance have been quick to cast aside Bitcoin, they’re not expressing the same sentiment towards blockchain.

    In fact, banks, prominent investors — Bitcoin skeptic Warren Buffett included — have embraced blockchain, co-opting the technology as a way they can improve the speed, cost, and security of transactions and other banking processes.

    HSBC India Blockchain

    Hongkong and Shanghai Banking Corporation (HSBC), one of the world’s largest banks, recently confirmed that it is looking to use a blockchain application to manage assets worth billions of dollars.

    Sure, this isn’t a boon for Bitcoin (it shouldn’t be, anyway), though it will be a boon for the blockchain lovers.

    HSBC Delves Into Blockchain

    Table of Contents

    • HSBC Delves Into Blockchain
    • Ethereum, Not Private Blockchain?

    According to a report published Wednesday by Reuters, HSBC will be using a blockchain-based custody platform dubbed “Digital Vault” to manage $20 billion worth of assets in “one of the biggest deployments yet of the widely-hyped but still unproven technology by a global bank.” HSBC representatives said that the company intends to have this done by March.

    This new HSBC platform will effectively bring formerly paper-based records of private placement investments onto a blockchain, reducing the “time it takes investors to make checks or queries on holdings.”

    This is purportedly a pressing solution as private placement-related assets are purportedly hard to access due to the lack of standardization and the fact that they’re mostly backed by physical records.

    The $20 billion that will be migrated to Digital Vault represents around 40% of HSBC’s private placement assets.

    HSBC didn’t touch on the time and cost savings that could be had with the adoption of Digital Vault, though an analyst of the industry isn’t all too convinced. Windsor Holden, a consultant for blockchain and cryptocurrencies, said:

    “I wouldn’t expect to see huge savings, or huge efficiencies announced in the first year to 18 months.”

    Regardless, this isn’t HSBC’s first foray into blockchain. Earlier this year in September, the bank completed the first “yuan-denominated blockchain-based letter of credit transaction” through a platform developed in collaboration with eight banks, such as BNP Paribas and Standard Chartered.

    Also, early this year, the institution revealed that it had settled $250 billion worth of foreign exchange trades using blockchain technologies in 2018 through a platform known as “FX Everywhere.”

    Ethereum, Not Private Blockchain?

    While HSBC, JP Morgan (for its JPM Coin) and other banks are using private blockchains, some are testing more public networks. One such institution is Banco Santander, a Spanish bank that is the world’s 16th largest banking institution.

    Santander earlier this year completed the first “end-to-end blockchain band” transaction using Ethereum — yes, the Ethereum that is currently the second-largest network on CoinMarketCap.

    As reported by Blockonomi on the matter, this meant that Santander using only Ethereum and ERC-20 tokens to settle a $20 million debt issuance, seemingly a world-first. Santander has also been making use of Ripple’s xCurrent solution, a global real-time gross settlement system, for a payments solution called “One Pay FX” that allows customers to, from a top-down level, “complete international transfers on the same day in many cases or by the next day.”

    It isn’t clear if there are higher cost savings in using Ethereum/other public blockchain networks that allow for smart contract settlement or private blockchains, though we should soon get our answer if banks continue to test out the two classes of networks.

    Advertise Here
    Nick Chong
    • Website
    • X (Twitter)
    • LinkedIn

    I am a writer who has been following the cryptocurrency space since 2013. My insights and interviews have been featured in leading publications in the industry such as LongHash, NewsBTC, and Decrypt. When I am not writing, I work as a team member of the EXODUS division of HTC, a Taiwanese electronics company. I own a small amount of Bitcoin. Contact NickC@blockonomi.com

    Related Posts

    Algorand’s Python Integration Set to Transform Blockchain App Development Forever

    December 8, 2023

    EOS Network – An Enterprise-Grade Blockchain Operating System

    November 29, 2023

    Former OneCoin Compliance Chief Pleads Guilty to Fraud and Money Laundering

    November 10, 2023

    Comments are closed.

    Coinbase Earn
    Advertise Here
    Gambling
    • mBit Casino
      VisitReview
    • BC Game
      VisitReview
    • Duelbits
      VisitReview
    • BitcoinCasino
      VisitReview
    • FortuneJack
      VisitReview
    • 1xBit
      VisitReview
    Exchanges
    • KuCoin
      VisitReview
    • Coinbase
      VisitReview
    • Binance
      VisitReview
    • PrimeXBT
      VisitReview
    Koinly
    Advertise Here
    Trading Bots
    • 3Commas
      VisitReview
    • Cryptohopper
      VisitReview
    • CoinRule
      VisitReview
    3commas Trading Bot
    Advertise Here
    All content on Blockonomi.com is provided solely for informational purposes, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, product, service or investment. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate.
    Blockonomi™ Copyright © 2017 - 2023 Kooc Media Ltd. All rights reserved. Registered Company No.05695741
    Network: Moneycheck - Finance News / Beanstalk - NFT & Metaverse News
    • About
    • Contact
    • Deals
    • Advertise
    • Privacy Policy
    • Terms & Conditions

    Type above and press Enter to search. Press Esc to cancel.