UK-based bank HSBC is close to launching live trade and transactions using blockchain technology.
The project was reported in late 2015, with the bank aiming to maximize efficiency and bring real-time awareness and organization to financial systems.
According to spokesperson Joshua Kroeker , the bank is almost ready to provide the service after having spent the past two years working through issues.
“Going from that PoC in 2016, we’re at the tipping point of getting our customers involved in live transactions in the coming weeks and months. The technology has come a long way, we’re much more comfortable with its security and scalability.”
The company is now looking for individuals to pilot the products, and hopes to roll out the system across a range of networks by 2019.
HSBC is not alone in this field, with today’s news following an announcement coming from Taiwan’s central bank chief revealing the bank will explore blockchain applications in its operations including payments. The development is occurring around the world – last year fifteen of India’s largest banks formed a consortium to oversee the introduction of an inter-bank blockchain, with the goal of integrating blockchain alongside existing infrastructure and technologies.
Blockchain is integrating into financial systems at a rapid pace, and one of the main players has emerged in the form of the virtual currency Ripple. Earlier this month news broke that Brazil and Latin America’s largest bank would use the virtual currency to streamline its cross-border payments system, joining a broad range of countries planning to use the protocol.
Whilst banks across the globe have been embracing blockchain technology, centralized financial institutions have shown concern over most decentralized cryptocurrencies. This week JP Morgan Chase, the largest bank in the US formally announced that the technology could disrupt its business. That hasn’t stopped banks from noticing the potential benefits that blockchain could bring, however,
Although blockchain technology is being developed rapidly by a range of financial institutions, HSBC may stand as one of the first to launch a working blockchain system as part of daily operations.
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Last modified: May 20, 2020 9:03 PM UTC