The British bank HSBC has announced that it is seeking partner banks in South Korea for its blockchain platform, Voltron.
A report from the Korean Times on March 12 stated that the platform has several advantages such as speed and privacy, features which the international remittance service covet.
Voltron takes advantage of blockchain permissions to make transactions more private since those that have access to them are authorized parties.
The validation process is also initiated by the parties giving users control unlike what is presently obtainable in traditional banking systems.
Its ability to cut down time and cost of transaction makes the demand for a blockchain-based banking desirable.
Joshua Kroeker, HSBC’s innovation director highlighted on the positives of the platform when he said,
“The biggest impact would be time. Time and transparency will help companies better manage their cash flow and working capital.”
Kroeker said that he was in the country to find banks willing to collaborate in the partnership for Letters of Credit.
The Voltron platform was launched at the end of 2018. It already has 7 partners even though it is still at its test stage.
The banks that are in partnership with HSBC are Bangkok Bank, BNP Paribas, CTBC Holding, ING, NatWest, SEB and Standard. Chartered.
The platform will launch commercially this year. Before then, HSBC hopes to have built global partnerships on which it’ll base viability claims of the Voltron.
Banks have increasingly acknowledged the merits of blockchain technology.
Béatrice Collot Head of Global Trade and Receivable Finance at HSBC recently paid glowing tributes to blockchain saying that it has the ability to synergize all the components of financial ecosystem such as banking, supplies and the supply chain ecosystem
According to her, the spontaneity and transparency of the distributed ledger technology makes it ideal driver of the industry.