HSBC to Track $20 Billion in Assets on a Blockchain Next Year

HSBC bank is planning on tracking roughly $20 billion in assets on a blockchain-based custody platform early next year, Reuters reported Wednesday.

According to the report, HSBC intends to move its current paper-based records onto its Digital Vault platform by March 2020, allowing investors to track securities in real-time.

HSBC is only transferring 40 percent of its records onto a blockchain, according to the report.

While using a blockchain platform is intended to save costs, HSBC "Could not quantify the amount that could be saved for the bank or its clients," Reuters said.

The bank has experimented with blockchain tools for more than a year now.

In January, HSBC announced it had settled some 3 million foreign exchange transactions using a blockchain platform, conducting some $250 billion in trades in the process.

The bank has also hinted at using blockchain to digitize letters of credit in the past.

HSBC did not immediately respond to a request for comment.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.

CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.