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Title: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: Hydrogen on November 30, 2019, 10:26:01 AM Quote (Reuters) — HSBC aims to shift $20 billion worth of assets to a new blockchain-based custody platform by March in one of the biggest deployments yet of the widely hyped but still unproven technology by a global bank. The platform, known as Digital Vault, will give investors real-time access to records of securities bought on private markets, HSBC told Reuters, and seeks to capitalize on booming interest in such investments by yield-hungry investors. Banks and other financial firms have invested billions of dollars into finding uses for blockchain, a digital ledger that can be instantly and transparently updated. Few, however, have come up with practical or widely used applications. Proponents say the blockchain will upend the financial sector by cutting out costly processes or the need for intermediaries — though there have been few solid examples yet of such revolutionary use. The HSBC platform will digitize paper-based records of private placements, using blockchain to reduce the time it takes investors to make checks or queries on holdings. Records of private placements are typically held on paper and lack standardization, making access tricky and time-consuming. HSBC currently looks after up to $50 billion worth of the assets, it said. It is not yet clear, though, how transformational the project could become. HSBC could not quantify the amount that could be saved for the bank or its clients by the platform. Demand for private placements of both debt and equity have grown significantly in recent years, as investors search for higher returns amid low interest rates worldwide and technology firms in particular shun the scrutiny of public markets. HSBC expects the global value of private placements to hit $7.7 trillion by 2022, a jump of 60% from five years earlier. Over the same period, it thinks allocations by asset manager clients will grow to 20% from 9%. Ciaran Roddy, who heads custody innovation at HSBC’s securities services arm, said interest in private placements from U.S. and British insurers, as well as Asian and Middle Eastern sovereign wealth funds, is on the rise. “With some of the yields that are on offer, we are definitely seeing an increase in demand,” he said. The news comes ahead of an expected shake-up of HSBC’s global banking and markets division, with interim CEO Noel Quinn seeking to cut costs and improve returns in the business. Windsor Holden, an independent consultant who tracks blockchain and cryptocurrencies, said major savings were unlikely in the initial stages of projects, such as the custody platform. “I wouldn’t expect to see huge savings or huge efficiencies announced in the first year to 18 months,” he said. https://venturebeat.com/2019/11/28/hsbc-to-shift-20-billion-worth-of-assets-to-blockchain-based-digital-vault/ .... This could be partly tied to bitcoin's recent price increase. The banking industry isn't doing well atm. These blockchain associated news releases could be made with the intent to drive up bank stock prices and valuation numbers. Quote Proponents say the blockchain will upend the financial sector by cutting out costly processes or the need for intermediaries — though there have been few solid examples yet of such revolutionary use The bolded portion of the article above could imply HSBC bank plans to layoff employees, replacing them with an automated blockchain. Quote Windsor Holden, an independent consultant who tracks blockchain and cryptocurrencies, said major savings were unlikely in the initial stages of projects, such as the custody platform. “I wouldn’t expect to see huge savings or huge efficiencies announced in the first year to 18 months,” he said. That part about no savings in 12-18 months could indicate stalling on the part of HSBC bank, to buy them time to bring circumstances under control. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: dothebeats on November 30, 2019, 01:38:02 PM This seems like HSBC is trying to make a play to at least stay afloat and to garner interest for their stocks to rise in the midst of devaluation and clumsiness in the whole of the traditional stock market scene. I view companies taking up the blockchain hype as something that boosts the interest of people towards their brand and not really for the innovation and genuine interest of the companies.
With the announcement of German banks facilitating crypto-related services, I think HSBC is also trying to get ahead of other banks on the sphere to get the most customers possible early on in the game. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: Lucius on November 30, 2019, 01:57:31 PM This could be partly tied to bitcoin's recent price increase. I think this is something completely related to using blockchain, and it has nothing to do with the price increase of BTC, if we can speak of any increase at all. This is just about the recovery that followed the rather large decline (if we refer to the price over the past few months). Most banks are not exactly in a great position, but far from being a bad stand, people still use banks and that will not change so easily. Money that HSBC will invest in this blockchain project is very big, but they are not investing in BTC. What I see here is possibly bad news for employees who will be replaced by blockchain, and at the end more profit for the bank. Given the reputation this bank has, it would not surprise me they use this as a way of money laundering. If my memory serves me good, they spokesman in Hong Kong said on one occasion that he did not see any problem with the money being brought in by trucks from China, with just a piece of paper on which account should be deposit, not to mention drug cartel money and terrorist financing. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: blckhawk on November 30, 2019, 03:28:47 PM It's hardly any correlation to have with Bitcoin as of the moment, and based on the news that came out. Though this is generally good for blockchain adoption, it won't affect Bitcoin's price that much. If also this is the words from them, it seems like HSBC is having some problems gaining profit and have finally decided to join the blockchain-powered system. They may still have to employ though, with higher salaries since they would need a lot of developers and security analysts to maintain the order on the system and prevent any harm, such as hacks and exploits, from happening.
Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: Twentyonepaylots on November 30, 2019, 05:25:55 PM This seems like HSBC is trying to make a play to at least stay afloat and to garner interest for their stocks to rise in the midst of devaluation and clumsiness in the whole of the traditional stock market scene. I view companies taking up the blockchain hype as something that boosts the interest of people towards their brand and not really for the innovation and genuine interest of the companies. Stock market today seems fine but not that healthy anymore. HSBC did this to make themselves on level as much as possible, other banks are getting blockchain so must keep up. But I doubt this has something to do with bitcoin's price, it is possible for people to get hooked with cryptocurrency after seeing this news, not quite at all. Good thing HSBC took the advantage of today's technology.With the announcement of German banks facilitating crypto-related services, I think HSBC is also trying to get ahead of other banks on the sphere to get the most customers possible early on in the game. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: hatshepsut93 on November 30, 2019, 07:44:17 PM .... This could be partly tied to bitcoin's recent price increase. The banking industry isn't doing well atm. These blockchain associated news releases could be made with the intent to drive up bank stock prices and valuation numbers. What does this centralized database has to do with Bitcoin? Just because they both are related to blockchain, it doesn't mean that everyone will rush to buy Bitcoin. In fact, it's blockchain that is correlated with Bitcoin rather than the opposite - in 2017 altcoin and blockchain hype was based on Bitcoin's bull market, and without it no one would care about blockchain. As for banking industry not doing well - where does that come from? I checked the NASDAQ Bank index, and it actually looks pretty good. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: 1Referee on November 30, 2019, 08:02:35 PM The banking industry isn't doing well atm. These blockchain associated news releases could be made with the intent to drive up bank stock prices and valuation numbers. It depends on what bank you are looking at because one bank isn't the other.Bank of America stock is the highest in over a decade. Wells Fargo has been trending up for its entire history at the nyse. Citigroup has had a very decent decade. Goldman Sachs has had a very decent decade. Morgan Stanley has had a very decent decade. JPMorgan is making new all time highs. HSBC has been lagging behind, but that doesn't mean the whole banking industry isn't doing well. :P Stock market today seems fine but not that healthy anymore. The us stock market is doing better than ever before. It has been hitting a new all time high pretty much on a bi-monthly basis. People who shorted stocks thinking they were about to get hammered have been hammered themselves. There is so much debt floating around that it will continue pumping stocks for a long time, well beyond what people consider fair or overvalued for companies. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: shield132 on November 30, 2019, 08:49:37 PM I have no idea how blockchain technologies can cut out costly processes, can anyone explain please? Cause from my understandings, what blockchain technologies can do is to add an extra layer of protection to stored data while enhancing transparency.
Also how can blockchain technologies take part of some employees? What kind of employees do they mean? Those who confirm transactions? If yes, then from which time does blockchain technologies offer human like intelligence? I have no idea about this part. Maybe I misunderstood things, will be glad if anyone enlightens me. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: exstasie on November 30, 2019, 09:49:38 PM This could be partly tied to bitcoin's recent price increase. The banking industry isn't doing well atm. These blockchain associated news releases could be made with the intent to drive up bank stock prices and valuation numbers. Bingo. That's my theory behind Bank of America's flurry of blockchain-related patents. It doesn't really indicate any serious plans or anything transformational. It's really just so they appear to be on the cutting edge, not being left behind in terms of fintech developments. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: samcrypto on November 30, 2019, 10:31:12 PM This could be partly tied to bitcoin's recent price increase. The banking industry isn't doing well atm. These blockchain associated news releases could be made with the intent to drive up bank stock prices and valuation numbers. Bingo. That's my theory behind Bank of America's flurry of blockchain-related patents. It doesn't really indicate any serious plans or anything transformational. It's really just so they appear to be on the cutting edge, not being left behind in terms of fintech developments. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: panganib999 on November 30, 2019, 11:24:42 PM This is actually for the banks instead, not for BTC's purpose. It doesn't really have any relationship with the current increase in the BTC market. Blockchain technology is just the medium used for crypo, and the both of them being used doesn't necessarily mean a relationship is in there. This actually advertises possible improvements in the current system of banks as well changes in its quality of life. Tbh, any type of improvement made by the banks at this point are direly needed by them to stop their users from migrating to using crypto instead, especially with all the possible hype of fiat being replaced by crypto. Well, it is one way of banks to fight back against crypto I'd suppose.
Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: ecnalubma on November 30, 2019, 11:37:13 PM We can’t set aside the banks real intention probably also like to hype the stocks through this but a $20 billion is very staggering move. It seems that major banks are making their early involvement in the blockchain space which could particularly build more confidence in the space.
Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: hello_good_sir on December 01, 2019, 03:56:22 AM Now doesn't that sound cool? A blockchain-based digital vault!
Even though it's pretty obvious this is forced innovation, and the banks are likely only doing this for attention/to please shareholders, it is something interesting to talk and look at. The idea of moving everything to a single centralised platform, where everyone can see deals that have been made (even private ones) sounds extremly bad for business, and it's neglecting a lot of people who are focused on privacy. Don't think this will ever get anywhere. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: CryptoBry on December 01, 2019, 04:56:39 AM The banking industry is definitely so interested with the innovations that can come in using the blockchain technology which can be adopted to different use-cases and varying situations. HSBC is one hell of a bank that is always on the look-out for changing trends on the market, and they now recognized of the importance in making sure they are one of the pioneering banking institutions using the blockchain technology. However, good news as this is, I don't see any visible link to the price of Bitcoin as these two things can be related but really different. When one is taking advantage of the open-source blockchain technology, there is no need whatsoever to also get involved with Bitcoin. One can love the blockchain technology and yet on the same breath hates Bitcoin, just like what China is doing right now. I am then wishing that Satoshi Nakamaoto made sure that anybody using the blockchain technology must be making a deposit of Bitcoin in a certain wallet to increase the demand for the coin. But Mr Satoshi is not for business or commercialization but for contributing something which mankind can use anytime. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: Mometaskers on December 01, 2019, 06:00:42 AM Not really related to bitcoin so it really won't affect it. I believe HSBC is not the first bank to say they are trying blockchain. It's really an issue on physicality, most bank operations are already digital anyway, with bills barely moving.
But it's still a business so I suppose they've calculated they'd be able to reduce operation cost transitioning. That plus it's hip to slap "blockchain" on many things these days that they make it look like a fad. If this would reduce their use for money laundering (I doubt it) then good still. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: Murat on December 01, 2019, 06:25:51 AM Absolutely it will bring a good situation to the blockchain system and Cryptocurrency will get also some privilege from this one because it's directly related to the blockchain system, so Bitcoin and cryptocurrency both will gain more acceptance around the world, in this way, people will regain the faith on this system because the last year was not good for this cryptocurrency related platform, not only that but also I hope other banks will take as like as initiative for their future purpose because blockchain will be the mainstream of everywhere, it's the beginning of a new era.
Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: Wapfika on December 01, 2019, 02:43:48 PM Not really related to bitcoin so it really won't affect it. I believe HSBC is not the first bank to say they are trying blockchain. It's really an issue on physicality, most bank operations are already digital anyway, with bills barely moving. It's a good move for blockchain adoption and maybe soon with cryptocurrencies too, as there are banks offering Bitcoin ATM too in our country. These might be the start of bitcoin and banks cooperation in creating a business crypto implemented. But it's still a business so I suppose they've calculated they'd be able to reduce operation cost transitioning. That plus it's hip to slap "blockchain" on many things these days that they make it look like a fad. If this would reduce their use for money laundering (I doubt it) then good still. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: TastyChillySauce00 on December 01, 2019, 03:14:23 PM Not really related to bitcoin so it really won't affect it. I believe HSBC is not the first bank to say they are trying blockchain. It's really an issue on physicality, most bank operations are already digital anyway, with bills barely moving. It's a good move for blockchain adoption and maybe soon with cryptocurrencies too, as there are banks offering Bitcoin ATM too in our country. These might be the start of bitcoin and banks cooperation in creating a business crypto implemented. But it's still a business so I suppose they've calculated they'd be able to reduce operation cost transitioning. That plus it's hip to slap "blockchain" on many things these days that they make it look like a fad. If this would reduce their use for money laundering (I doubt it) then good still. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: aardvark15 on December 01, 2019, 03:50:10 PM Blockchain technology is going to be everywhere soon. The difference here though is that this is not a decentralized open ledger but is a privately owned blockchain that a corporation will control.
Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: Kprawn on December 01, 2019, 05:39:41 PM Look closely, you will not find that they mention anything about the Bitcoin token. The asset they talk about is some centralized Blockchain based
technology that they control. Banks will never use Bitcoin, because they want it to fail, they would rather take the best part of it (Blockchain) and create their own centralized technology and push a lot of money into that. This way they can manipulate the price by changing the supply and also identifying the customers using the technology. (As required by the regulating authorities in the form of KYC/AML regulations.) >:( Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: Yatsan on December 01, 2019, 07:04:35 PM Look closely, you will not find that they mention anything about the Bitcoin token. The asset they talk about is some centralized Blockchain based technology that they control. Banks will never use Bitcoin, because they want it to fail, they would rather take the best part of it (Blockchain) and create their own centralized technology and push a lot of money into that. Bitcoin was never eyed by these institutions but rather the technology behind it that made it so popular. Most probably they will create their own blockchain provided with their own cryptocurrency on which they will have a full control. As a matter of fact these banks are really threatened with bitcoin that has already affected their operations and also taking advantage of the mass that is continuing the use of cryptocurrency. Banks are smart, so new people should too. This way they can manipulate the price by changing the supply and also identifying the customers using the technology. (As required by the regulating authorities in the form of KYC/AML regulations.) >:( This is the very reason why they did not use bitcoin or any other cryptocurrency but maybe they'll take partial of this knowing bitcoin is at short price range. I'd rather be happy than to be sad knowing that they are going to issue KYC procedures, in fact it is an added security for us, on top of physical security on their establishments.Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: Mometaskers on December 02, 2019, 03:42:14 AM Not really related to bitcoin so it really won't affect it. I believe HSBC is not the first bank to say they are trying blockchain. It's really an issue on physicality, most bank operations are already digital anyway, with bills barely moving. It's a good move for blockchain adoption and maybe soon with cryptocurrencies too, as there are banks offering Bitcoin ATM too in our country. These might be the start of bitcoin and banks cooperation in creating a business crypto implemented. But it's still a business so I suppose they've calculated they'd be able to reduce operation cost transitioning. That plus it's hip to slap "blockchain" on many things these days that they make it look like a fad. If this would reduce their use for money laundering (I doubt it) then good still. Maybe, maybe not. Maybe more banks might be able to offer bitcoin services in their ATM if they themselves have their own blockchain. I already see cardless withdrawals from ATM and there's at least one bank where I am where we can send the bitcoin from the exchange to the bank and withdraw from their ATM despite not having an account with that bank. Maybe we'll get to the point where all banks have that service. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: EdvinZ on December 02, 2019, 06:53:08 AM I also believe that a similar statement could be made by HSBC deliberately to raise its share price. The announcement of the introduction of digital blockchain technologies is a good reason to hope that investors will buy shares of the company. But it also shows how serious banks are about blockchain technology. I think in the future the number of banks implementing advanced digital technologies will increase.
Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: Ayiranorea on December 03, 2019, 02:24:37 AM I also believe that a similar statement could be made by HSBC deliberately to raise its share price. The announcement of the introduction of digital blockchain technologies is a good reason to hope that investors will buy shares of the company. But it also shows how serious banks are about blockchain technology. I think in the future the number of banks implementing advanced digital technologies will increase. Most of the banking firms have known good about the need of advanced technology and to keep them up to date with the market demands. Compared to other banking firms HSBC has been experiencing lag in growth. Such initiation taken forward will make more global investors prefer to invest on the shares which were found low at present.Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: Hydrogen on December 03, 2019, 01:53:50 PM HSBC has been lagging behind, but that doesn't mean the whole banking industry isn't doing well. :P Awhile ago, a thread was posted in the economics section for a bloomberg article which claimed more than 50% of the world's banks could be too weak to survive a recession: https://bitcointalk.org/index.php?topic=5195846.msg52871571#msg52871571 In addition to this, we know banks in major nations like china have experienced significant melt downs recently with many chinese banks being bailed out or nationalized in 2019. If you disagree with the idea of banks not doing well atm, this is what you have to contend with. Weakness on the part of banks could represent a major motivation for many being desperate enough to announce alliances with competitioin in the form of blockchain or cryptocurrency technology. All of this appears to be a natural progression and the most likely scenario. Although a part of it is likely political in origin rather than simple necessity. If you disagree, I would be interested to hear why. Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: Clement Kaliyar on December 03, 2019, 04:04:00 PM Most probably they will create their own blockchain provided with their own cryptocurrency on which they will have a full control. As a matter of fact these banks are really threatened with bitcoin that has already affected their operations and also taking advantage of the mass that is continuing the use of cryptocurrency. Banks are smart, so new people should too. To implement blockchain for their banking system to monitor and safeguard everything they can use blockchain to have more transparency and they do not necessarily need to make a currency for those transaction and for a bank to come up with their version of digital currency is not easy as you need the government to implement these and a bank are just safe keepers. ;DTitle: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: Karmakid on December 04, 2019, 02:33:52 AM This is a huge move by the HSBC bank and it is a proof for the haters and to the skeptical that blockchain technology is really a thing and it is not useless because if its useless then there will be no company especially financial institution to use this kind of technology. With this big fun by the HSBC, I hope this will serve as an encouragement to the people who doubt blockchain to utilize it now.
Title: Re: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault Post by: audaciousbeing on December 04, 2019, 03:31:00 PM Look closely, you will not find that they mention anything about the Bitcoin token. The asset they talk about is some centralized Blockchain based technology that they control. Banks will never use Bitcoin, because they want it to fail, they would rather take the best part of it (Blockchain) and create their own centralized technology and push a lot of money into that. This way they can manipulate the price by changing the supply and also identifying the customers using the technology. (As required by the regulating authorities in the form of KYC/AML regulations.) >:( You might not be far from the truth and it would even sound more absurd if the bank has announced that they will be using bitcoin because they can't. Not because they don't want to, but because the laws and regulations which they must comply with does not allow them to do so. Except there is a position from the government at which the bank is located, I don't see any difference in the status quo. The take away from this is what the community needs to take which is the potency of the blockchain technology which by inference bitcoin is a testament that the technology works. So, by the continued harness of blockchain, there is a subtle support for bitcoin and other crypto that runs on it. |