HSBC Plans to Track $20 Billion Worth of Assets on a Blockchain by Next Year
By Mark Lemon – Cryptocurrency Dealer
On Wednesday, Reuters reported that HSBC bank is working to track $20 billion worth of assets on a blockchain-based custody platform, Digital Vault, sometime early next year. The system is much like the Distributed Ledger Technology (DLT) that records transactions when users buy and sell Bitcoin.
The report states the bank will move its paper-based records onto the platform by March 2020, wherein investors in real-time can keep track of their securities. This offers a great deal of convenience to investors who can check in on their holdings whenever and wherever it suits them. The concept derives from many blockchains which you can use to buy crypto and transact as all the data is publicly verifiable and available, but this is just with securities instead.
As of now, the records are in their paper-based form which is both tricky as well as time-consuming to access. The report also states that the UK-based bank is only transferring 40% of its records on a blockchain. Presently, the bank has over $50 billion in assets. This is still a huge amount of financial asset data. The bank has not elaborated if they plan to introduce a token so any user could buy cryptocurrency on the blockchain or if it will just be used for private placement records so investors can check holdings.
Reuter said that although the Blockchain platform can help the bank and its clients save on costs, HSBC could not specify the amount that could be saved.
Windsor Holden, an independent consultant told Reuters that no one should expect any savings announcements to be made in the latter half of 2021 after the platform has rolled out. It is unsure how efficient the platform will be for its purpose and if it will have the same effect as buying Bitcoin for transacting compared to traditional international transfers.
For more than a year now, HSBC has been experimenting with a variety of blockchain tools. Earlier this year in January, the UK-based bank announced over 3 million foreign-exchange transactions had been settled through a blockchain platform, in which over $250 billion in trades were conducted. The platform used was not disclosed, but HSBC could have been buying crypto like those available on the open markets to make the transactions.
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Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards