HSBC’s Latest Digital Push
HSBC is continuing to press forward with emerging technologies. The global bank, based in London, is planning on moving $20 billion worth of private placement assets to a blockchain custody platform over the coming months, according to reports.
The emerging platform known as Digital Vault will effectively streamline the way investors keep track of their portfolios, eliminating the need for many third-party services and saving vast amounts of resources.
This revelation of a global bank shifting assets from a paper-based record system to a digital ledger could be yet another “call to action” (like Facebook’s Libra coin) to shift towards money 2.0 and to re-evaluate how we send, receive, and hold assets of value, similar to how information and its usage have radically changed in the last 30 years!
HSBC has seen a rising demand for private placements in recent years and expects a global value of private placements of over $7 trillion by 2020. The bank currently oversees up to $50 billion of assets for investors.
The benefits of utilizing faster and more efficient technology are too big for industry leaders to pass up (if they swallow their pride).
Large corporations are typically slower to make changes. Those who act now and begin readjusting will gain a critical first-mover advantage over other slow-moving rivals. Blockchain serves as an ideal technology for gathering and organizing data and tracking information in real-time.
Whether the technology is harnessed by the public through systems like Bitcoin or mega banks such as HSBC using private and closed systems, blockchain remains a double-edged sword.
This isn’t HSBC’s first play with blockchain technology. Just under a year ago, we reported on the bank settling $250 billion in payments using blockchain-powered technology.
“Following successful implementation inside the bank, we are now exploring how this technology could help multinational.” – Source: Finextra
This post is for educational purposes. All information used is referenced accordingly. This is not investment advice; please always do thorough research and only invest what you are willing to lose, especially in times of uncertainty.