HSBC has announced it is the first financial institution to use software firm - R3s blockchain platform Corda Enterprise and move it onto Google Cloud.
The multinational bank was one of the first global banks to adopt blockchain technology into its systems. HSBC, alongside ING Bank, was the first to pilot a letter of credit in 2018 on the Voltron blockchain trade platform, and has now become the first financial institution to use R3’s Corda enterprise blockchain on Google Cloud.
This move by HSBC, to the cloud, marks a turning point for global custody clients, who will now be able to access details of their private assets directly and in real time, instead of requesting paper-based records. The bank currently uses Corda’s Digital Vault service as a way to cut onboarding time and reduce costs.
In a statement from Gaurav Aggarwal, HSBC’s Head of Distributed Ledger Technology and Tokenisation, Markets & Securities Services, the bank addressed the future of the move to the Google Cloud:
“Being the first organisation to move Corda technology to Google Cloud is a further sign of HSBC’s commitment to blockchain and cloud technologies [...] As well as cutting onboarding times and reducing costs, it will help us prepare for the future, in which the full transaction lifecycle could be stored on a distributed ledger,”
The digital vault service utilises the blockchain to digitise the transaction records of private assets, that include equity, debt, and real estate. This service is currently only available in Asia, with likely expansion in the future.
Cathy Minter, chief revenue officer at R3, added:
“Blockchain’s potential in supporting the custody of future digital asset classes is immense, and we have already seen this in practice with HSBC’s Digital Vault service. As HSBC moves Corda onto Google Cloud, clients will benefit from faster onboarding times and reduced costs. Corda was built with the highest standards of privacy and security in mind.”
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