According to the Korean news outlet, The Korea Times, English banking giant HSBC is looking for potential partnerships in South Korea to launch blockchain platform Voltron. Voltron is known to be a platform that enables companies to process and settle their trading invoices via blockchain.
The Voltron initiative was initially introduced in October 2018 by blockchain consortium R3 and numerous banks including HSBC, ING and Standard Chartered. Currently, the launch of the Voltron platform is in its pilot phase.
Additionally, according to HSBC’s innovation Director on Blockchain Joshua Kroeker, the bank has planned to launch Voltron commercially very soon, as HSBC wants to establish relationships with numerous Korean banks to collaborate on the development of the Voltron platform and share costs.
Kroeker shared his enthusiasm for the blockchain, as he believes it can facilitate interbank operations and connections. He told reporters:
The biggest impact would be time. Time and transparency will help companies better manage their cash flow and working capital… I am here this week to reach out to Korean banks to collaborate on this blockchain platform for letters of credit.
On a related note, earlier this year, Béatrice Collot, Head of Global Trade and Receivable Finance at HSBC, talked in favor of blockchain technology, claiming that it has the capacity to merge the two sectors playing major roles in trade finance. The sectors being the supply chain and banks as suppliers financial ecosystems can benefit from the transparency and the Instantaneity the blockchain offers according to Collot.
Prior to Voltron, HSBC had already launched its proprietary blockchain solution platform FX Everywhere which has reportedly cut costs for foreign exchange trade settlement by 25 percent.