HSBC has become the first financial institution to move software firm R3’s blockchain platform Corda Enterprise onto Google Cloud.
The bank currently uses R3’s Corda technology for Digital Vault, HSBC’s custody blockchain platform. The move will cut client onboarding times from months to weeks, improving the client experience and significantly reducing costs.
Moving the Corda technology to Google Cloud gives the bank the option to move more of the transaction lifecycle on to the ledger in future, including issuing digital tokens instead of paper certificates.
The Digital Vault service, launched in November 2019, digitises the transaction records of private placement assets including equity, debt and real estate.
According to HSBC, this enables global custody clients to access details of their private assets directly and in real-time instead of having to request a search of paper-based records.
The Digital Vault is currently available in Asia and will be rolled out in other regions in due course.
R3’s Corda platform enables businesses to transact directly and privately using smart contracts, reducing transaction and record-keeping costs and streamlining business operations.
Gaurav Aggarwal, head of distributed ledger technology and tokenisation, markets and securities services, HSBC, says: “Being the first organisation to move Corda technology to Google Cloud is a further sign of HSBC’s commitment to blockchain and cloud technologies.”
Aggarwal continues: “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.”
Cathy Minter, chief revenue officer at R3, comments: “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.”
According to Minter, the platform is ideally suited to empower HSBC’s global custody clients to access details of their private assets securely, and in real time.