The largest British bank HSBC used the Corda blockchain from the R3 consortium to store documents on securities offerings through a private subscription for $10 billion and does not intend to stop there. It is reported by CoinDesk.
Related: HSBC moved $20 billion from paper to blockchain
Initially, the conglomerate planned to reach a figure of $20 billion, but in the end, efforts were aimed at improving the functionality of the blockchain platform. HSBC is confident in the implementation of its plans within 12-18 months.
According to Ciaran Roddy, Head of Innovation and Strategic Initiatives at HSBC, the bank sees customer demand for the use of tokens throughout the life of the investment fund, as well as the use of tokens as a basket of various assets.
Roddy explained the reason for the digitalization of stock issuance by the fact that HSBC is trying to anticipate a world in which financial institutions see tokens as the best way to issue assets.
HSBC customers can access the so-called Digital Vault (digital storage) based on Corda through an online account and get a list of all available documents for a particular transaction. It is also possible to provide access to third parties, such as regulatory authorities and auditors.
Opportunities for tokenization and smart contracts will allow the bank to get rid of paper archives. However, HSBC recognizes that a lot of work will be required with potential issuers and regulators, who should see the tokens as legal, enforceable and transferable assets.