HongKong Shanghai Bank popularly known as HSBC plans to track approximately 20 billion dollars in asset on a blockchain platform by the beginning of next year. According to reports, HSBC is planning to move current existing records which were on paper onto its digital platform Vault by the end of March 2020. This platform will allow traders to track securities in real time. The bank is head quartered in London, United Kingdom. The bank has already scanned all the documents in their holding and also has made available them to the customers. The records are currently in paper formats according to the reports as it will take a lot of time and resources to access them in the current form. For the time being HSBC is only transferring its 40 percent of its logs to chain of blocks according to the reports. The bank has net capitalization of 50 billion dollars in asset today.
Banks and financial institutions will be saving a lot by the adoption of digital ledger. The banks and the other lenders have spent billions of dollars in the research and development of this technology known as the blockchain. Supporters of the technology are convinced that the blockchain technology will upset the financial sector and bring about a disruption in the industry. This will cut down costs for the banks and other financial institutions as this will eliminate expensive processes or the need for intermediaries.
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HSBC has set its path in the right direction as they already started the process of integrating blockchain into their financial process although it is not clear as how much the project will become transformational. HSBC was not able to approximately predict the amount of money they would be able to save due to this transition from a paper format to a digital format.
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