HSBC is revolutionising the way the bank tracks and records assets. Currently, Reuters reported that HSBC plans to shift around $20 billion worth of assets from paper records to a new digital blockchain platform. The shifting is expected to take place by March and it will be one of the biggest deployments of blockchain ever undertaken by a global bank.
The platform will be called Digital Vault and will give investors real-time records of private market securities. According to Reuters, HSBC has realized the growing appetite towards such investors from investors.
The new platform will shift assets that were previously recorded on paper of private placements to the blockchain platform. This will reduce the time it takes investors to actually make checks. These private placements are often held on paper and do not offer standardisation, which can be a real pain.
However, one thing that is not sure yet is how the project will take off and the impact it will have. The reason for that is HSBC couldn’t put a hard number of the potential savings for the bank that would result from implementing the platform.
What HSBC expects is that the global value of private placements will reach $7.7 trillion by 2020. Private placements are of particular interest for investors, as they are interested in the potential higher returns and the current low interest environment.
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