The bank has been involved in moulding and testing the nascent technology for the past two years.
The bank will launch several pilot projects based on a proof-of-concept consensus mechanism. It worked on these previously with other banking giants like Bank of America Merrill Lynch and the Infocomm Development Authority of Singapore to mirror the issued letter of credit.
HSBC is a part of the R3 consortium and will test the upcoming programs using R3’s Corda.
However, the bank cannot launch the blockchain-based services unless its other banking partners join the same network. For commercially using the blockchain-based letter of credit services every party involved in the trade cycle – the involved banks, regulators, and customs – need be on the same network.
HSBC sees the developing throughout 2018 so that in 2019, around the same time, the bank should be in a position to have both the network of banks, corporates and others, and the app ready to use on a wider scale.
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