HSBC, one of the largest banking and financial services organizations in the world, is in talks with California- based blockchain giant HashCash Consultants regarding cross-border subsidiary payments.
They are looking at a customization of HC Corporate Payments, HashCash’s cross-border business to business product built on the Blockchain technology. HC Corporate Payments powers core IT systems of enterprises and allows instant low-cost payments between the subsidiaries of the bank located in different geographies.
Use of blockchain and distributed ledger technology improves transparency and eradicates fraud. It makes tracking and sharing documents among counterparties easy and eliminates paperwork. Additionally, use of blockchain based messaging system eliminates the need to use the SWIFT network for financial messaging and saves significant cost for the bank.
“HC Corporate Payment is a full stack with business rules built in that can handle various use cases for cross-border business to business payments and can be customized using ready to use modules for future use cases,” said Ishan Roy, Head of Products, HashCash Consultants.
Corporations using HC Corporate payment are identified with friendly addresses which are similar to an email registered on the HC NET. The transfer of money happens using these friendly addresses instead of complex, error-prone IFSC codes, account numbers, and routing numbers. The user is able to direct the money in his account to a recipient in another part of the world in their local currency with the touch of his finger.
HC Corporate Payment creates a real-time statement as and when the transaction takes place. The blockchain based product further offers a view of this accounting statement to both counterparties at the same instant.
“HC Corporate Payment is a blockchain based product that supports the payment models in use today. Be it the Pre-funding model, Nostro-Vostro Model, Netting or Correspondent banking model, the product can handle it. But with the advantage of lower cost and higher efficiency”, says Raj Chowdhury, a prominent blockchain expert and Managing Director of HashCash Consultants.