Published on November 16, 2023, 8:30 pm

HSBC and FUJIFILM Business Innovation Hong Kong (FUJIFILM BI HK) have made a significant breakthrough in the realm of document tokenisation by successfully conducting a proof of concept (PoC) using public blockchains. Thanks to HSBC’s digital payments capabilities, this pioneering innovation paves the way for secure, fast, and fully compliant payment transactions on public blockchain platforms, opening up exciting possibilities for future commercial applications.

The PoC involved the creation of semi-fungible tokens (SFTs) through smart contracts developed by FUJIFILM BI HK. Once these tokens are minted, HSBC can automate and securely process payment transactions, offering significant benefits to business customers in terms of information security, process efficiency, and transaction costs.

Vincent Lau, regional head of international payments for Asia Pacific at HSBC, expresses enthusiasm about the collaboration between the two companies. He highlights how more corporate customers and partners are embracing blockchain technology to streamline their operations. Lau looks forward to exploring additional features and capabilities of document tokenisation via public blockchains in order to create commercial value together with customers.

Central to this PoC is HSBC’s patented technology called HSBC DLT Settlement Utility (HDSU). This solution facilitates settlement and payments for blockchains and distributed ledger technology networks while adhering to regulatory requirements. HDSU supports both emerging and traditional payment rails and can be deployed natively onto non-crypto public blockchains or permissioned DLT networks. It has already been tested in various PoC projects for use cases such as large value securities settlement, corporate cash management, and trigger-based supplier payments.

Tatsuya Nakamura, managing director of FUJIFILM BI HK, expresses his honor at collaborating with globally renowned financial institution HSBC on this PoC for document tokenisation. Nakamura emphasizes that showcasing how a blockchain-based solution can bring tangible benefits to Hong Kong’s wider business community is of paramount importance to his company, which is deeply committed to exploring the adoption of innovative technologies in collaboration with leaders from different sectors.

The technology driving this collaboration is also supported by BSN Spartan, the global Blockchain-based Service Network. BSN Spartan offers a decentralized cloud service network for distributed ledger technology without the involvement of cryptocurrencies. It enables organizations to integrate blockchain into their traditional clouds and data centers in order to securely exchange verified data.

FUJIFILM BI HK specializes in document management and consultancy and recently announced a partnership with Red Date Technology, the architect of BSN, to help Hong Kong enterprises address authenticity challenges related to documents and automate business processes using public blockchains.

The successful PoC conducted by HSBC and FUJIFILM BI HK marks a significant milestone in the application of generative AI in the banking industry. It demonstrates how blockchain technology can revolutionize payment transactions by tokenizing documents, leading to increased security, efficiency, and cost savings for businesses. As both companies continue their exploration of public blockchain technology, we can expect further developments that will reshape the way transactions are conducted in Hong Kong and beyond.

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