By deploying the platform, the global investment bank aims to digitize paper-based records of private placements in order to increase standardization and speed up processes in the growing industry, Reuters reports Nov. 27.
HSBC reportedly expects the global volumes of private placements to surge 60% from 2017 to hit $7.7 trillion by 2022. The bank could not estimate how much the platform will save for the company or its clients, Reuters states.
HSBC to help investors track securities on private markets in real-time
Specifically, the Digital Vault platform will purportedly allow investors to track securities bought on private markets in real-time.
As private placements are usually conducted on paper, its processes are often associated with a lack of standardization, while access to documentation can be complicated and time-consuming. By deploying blockchain, the company hopes to reduce the time needed to make queries on holdings by investors.