HSBC, a major global banking group incorporates tokenization technology into its receivables infrastructure for corporate India-based clients, as per an announcement on June 18.
As per the announcement, the British multinational financial services launched its Digital Accounts Receivable Tool (HSBC DART) that is based on tokenization technology developed by Australian blockchain-powered Fintech company Identitii Ltd.
#Blockchain technology has the potential to revolutionise #trade. Today we completed a trade transaction across two independently built blockchain platforms – merging the financial with the physical logistics of trade. We are #TransformingTrade. pic.twitter.com/ZIoamuWvtI
— HSBC (@HSBC) June 19, 2019
The statement also elaborates that HSBC DART was developed for HSBC’s Global Liquidity and Cash Management (GLCM) business and deploys Identitii’s approach to tokenization within HSBC’s existing infrastructure of receivables to enhance involved processes.
Designed to automate the accounts receivable (AR) process for HSBC’s corporate customers and their network of buyers, the instrument enables a secure communication layer between network participants. This reduces manual work including invoice payments documentation.
Notably, accounts receivable is the balance of money owed to a firm for services or goods provided or used but not yet paid by customers. As per the announcement, Identitii revealed HSBC’s plans to expand HSBC DART in new markets in Asia.
HSBC was originally founded in 1865 in British Hong Kong, United Kingdom and was the 7th largest bank in the world by 2018 and the largest in Europe, with total assets of about $2.6 trillion. HSBC was reported to be seeking banking partners in South Korea to deploy the blockchain platform Voltron, in mid-March 2019.
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