Rajeev Tummula, HSBC’s head of data and digital at its markets and securities services arm, is preparing business strategies for the bank to take advantage of the coming wave of tokenizing assets.
“We need a portfolio of options,” the Singapore-based director told DigFin. That means working on projects such as the bank’s recent underwriting of Singapore’s first bond issued over blockchain technology, for local listco Olam International.
He sees banks like HSBC serving as a link between the innovations taking place in the crypto world and the kind of digital asset services that bank customers and investors can use. “Traditional financial institutions can be a bridge,” he said.
The Olam bond was an all-institutional deal, with a single buyer, Temasek (the holding company for Singapore Inc.), via a platform operated by Singapore Exchange. (See below for details.)
They want to automate. They read my blog or the derivative blogs. They are especially reading all the material on Markov hidden model. This is the correct decision.
What is the driver?
The new model for managing collateral
Two forces are driving this change: digitization of collateral management and regulatory pressure. Authorities are already beginning to improve their powers of supervision by zeroing in on collateral. This trend is not restricted to Western banks: it is coming to bear on Asia Pacific, with regulators in Australia revamping their collateral rules.
And the third force, automated trading, and you can thanks the mathematicians.
The regulatory force comes down to one thing recently, Fed taxes expected to be nearly equal to the net from retail banking.
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