In March next year, banking giant HSBC plans to transfer assets of $ 20 billion to the custodial blockchain platform Digital Vault.
This step will allow investors to track real-time securities purchased in the private market, and the request time will be significantly reduced.
Currently, a bank headquartered in London manages assets worth $ 50 million, which means that 40% of the assets will be transferred to a platform supported by blockchain.
Introduced to the world ten years ago, blockchain has enormous potential for transforming the financial sector, making it efficient and cost-effective.
It is believed that the introduction of solutions based on the blockchain will lead to lower costs, but HSBC is not yet ready to quantify the savings.
The bank is introducing new technology, expecting that by 2020 the global cost of private placements will reach $ 7.7 trillion. The growth in 5 years will be 60%, while the distribution of asset managers in the same period will reach 20% against the current 9%.
This is not the first decision using blockchain technologies. Previously, the bank joined forces with the Singapore Exchange (SGX) and investment company Temasek to launch a pilot blockchain for issuing fixed-income securities.
This year, HSBC conducted its first blockchain-based cross-border letter of credit (LC) operation in RMB.