News

HSBC will track $20 Billion in assets using Blockchain starting next year

HSBC, one of the leading international banks in the world, is putting its trust in blockchain to track $20 Billion worth of private placements using a new blockchain-based custody platform. The new technology will replace paper-based records and the transition will be completed by March of next year. This deployment, dubbed ‘Digital Vault’, is one of the biggest of such a platform till date. If successful, it might encourage other megabanks and financial institutions to follow suit, which would be a big success for blockchain technology.

The bank is not completely new to such technology. It has been playing around with blockchain technology for more than a year. The bank used blockchain to make around 3 million foreign exchange transactions in January. That comes out to around $250 billion in trades.

Currently, the bank manages around $50 billion in private placements, so it is taking a huge leap of faith by placing 40% of it in the hands of an unproven technology. However, moving to blockchain comes with many benefits. Firstly, it will get rid of the hassle associated with paper-based records and will streamline operations in the records department of the organization. Furthermore, it will make these records much more accessible to both bank employees and investors. They can check up on their holdings within a matter of seconds, unlike the huge amounts of time and effort spent sifting through physical documents. The move will also save the bank some money in the long term, because maintaining a digital record is much cheaper than a paper-based one.

Sponsored
Taha Abdullah

Leave a Comment
Share
Published by
Taha Abdullah

Recent Posts

Indian Army Granted Authority to Directly Takedown Social Media Content

The Indian Army has been granted direct authority to manage social media content concerning its…

3 hours ago

NUST Achieves Global Recognition with 43 Researchers Among World’s Top 2% Scientists

In an extraordinary accomplishment for Pakistani academia, 43 researchers from the National University of Sciences…

4 hours ago

Khyber Pakhtunkhwa Govt Ready to Acquire PIA with Bid Exceeding Rs10bn

The Khyber Pakhtunkhwa (KP) government has officially informed the federal government of its intention to…

6 hours ago

PTA Cautions Public on Illegal and Unlicensed Forex Trading Platforms

The Pakistan Telecommunication Authority (PTA) has issued a stern advisory, warning citizens against investing in…

6 hours ago

Record Emigration: Economic Instability Forces Pakistan’s Best and Brightest to Depart

Economic challenges are prompting skilled workers to leave Pakistan, resulting in a significant talent drain…

8 hours ago

Russia’s Fine on Google Exceeds World’s Economy

A Russian court has fined Google for blocking state-run media channels on YouTube, imposing a…

1 day ago