Major global banking group HSBC has implemented tokenization technology into its receivables infrastructure for corporate clients in India, according to an announcement on June 18.
The British
multinational financial services company has reportedly launched its
Digital Accounts Receivable Tool (HSBC DART), based on tokenization
technology developed by Australian blockchain-powered Fintech company Identitii Ltd., the firm said in the announcement.
According to the statement, 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.
The instrument is designed to automate the accounts
receivable (AR) process for HSBC’s corporate customers and their network
of buyers, enabling a secure communication layer between network
participants and reducing manual work such as invoice payments
documentation. Accounts receivable is the balance of money owed to a
firm for services or goods provided or used but not yet paid by
customers.
In the announcement, Identitii revealed HSBC’s plans to expand HSBC DART in new markets in Asia.
Originally founded in 1865 in British Hong Kong, United Kingdom-based HSBC was the 7th largest bank in the world by 2018, and the largest in Europe, with total assets of about $2.6 trillion. In mid-March 2019, HSBC was reported to be seeking banking partners in South Korea to deploy the blockchain platform Voltron.
Previously, HSBC reported that implementation of blockchain tech in its forex trade settlement reduced costs of operations by 25%.
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