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HSBC Puts $10 billion worth Private Placement Assets on R3’s Corda Blockchain

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Jayashree Ingle Follow

INDIA

Apr, 03 2020

Apr, 03 2020

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The seventh-largest bank in the world HSBC has placed $10 billion worth of paper-based private placements (privately sold Stock shares or bonds) on R3’s Corda blockchain to accelerate its assets digitization project.

Last year, the HSBC had announced its plans to put in #20 billion on the Corda platform, but it was not materialized. The bank wants to increase the functionality of the platform to satisfy its client’s interest and thus has slowed down the on-board push. It has planned to move $20 billion worth assets including equity, real estate and debts on the Digital Vault Blockchain platform.

Ciaran Roddy, Head of Custody Innovation and strategy Initiatives of HSBC said, “We are confident that we’ll be able to put significant additional volume and value of private placements from new and existing clients (on the platform) over the next 12 to 18 months.”

Assets Digitization and Tokenization on Digital Vault Blockchain platform

With the ongoing digitization of the assets, HSBC also want to add security tokens on the blockchain and is quite focused on digitizing and tokenization the assets including the traditional assets

The reason for its resistance to the traditional database is its intention to tokenize the private placements after its digitization. Private placements include stock shares or bonds which are sold privately.

The HSBC is not in a hurry to dive into the crypto space. But it is focused on digitization of assets and trying to create demand for tokens from its customers for a whole fund lifecycle.

While tokenizing the assets the bank will be using Smart contracts on the blockchain platform. It will need to seek the opinion and permission of the issuers and will have to seek compliance from the regulators.

More about R3 Corda Platform

R3 Corda is a financial services consortium of around 70 firms which was founded by Corda open-source DLT platform by software company Corda. R3 Corda is a privately permitted DLT platform that enables the development of dApps for various financial services through Java programming.


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Jayashree Ingle

CBW - External Analyst

INDIA

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