HSBC, one of the world’s largest banks, has announced plans to launch a digital-assets custody service for institutional clients, focusing on tokenized securities in collaboration with Swiss crypto safekeeping specialist Metaco. This initiative, scheduled to go live in 2024, is part of HSBC’s broader digital asset offering for institutional clients and will complement HSBC Orion, the bank’s platform for issuing digital assets, and its recently introduced service for tokenized physical gold.
Banks and financial institutions are increasingly embracing blockchain technology to tokenize real-world assets, seeking to enhance transparency and efficiency. Regulatory authorities in various countries have also shown interest in testing tokenization for various financial products. HSBC clarified that its custody service is primarily aimed at “tokenized securities issued on third-party platforms,” such as tokenized bonds and structured products compatible with private and public blockchains.
HSBC’s strategic collaboration with Metaco signifies their commitment to delivering a secure and comprehensive digital asset custody solution. Notably, Metaco, recently acquired by Ripple for $250 million, remains dedicated to providing a robust custody platform to financial institutions and has strong growth prospects.
HSBC’s global head of digital assets strategy, markets, and securities services, John O’Neill, emphasized that these services underscore the bank’s dedication to fostering the development of digital asset markets. This move further underscores HSBC’s recognition of the importance of blockchain and digital assets in the evolving financial landscape.