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.
Topic: HSBC Bank to shift $20 billion worth of assets to blockchain-based Digital Vault - page 2. (Read 245 times)
November 30, 2019, 03:49:37 PM
November 30, 2019, 03:02:35 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.
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.
November 30, 2019, 02:44:17 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.
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.
November 30, 2019, 12:25:55 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.
November 30, 2019, 10:28:47 AM
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.
November 30, 2019, 08:57:31 AM
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.
November 30, 2019, 08:38:02 AM
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.
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.
November 30, 2019, 05:26:01 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/
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.
“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.
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