HSBC to Launch Tokenized Securities Custody Platform
HSBC, a major global banking company, has announced plans to introduce an institutional custody platform for tokenized securities, also known as security tokens. The firm has partnered with Ripple-owned tech company Metaco to integrate its institutional platform Harmonize with HSBC’s new custody service for digital assets.
The bank aims to roll out the new digital asset custody service in 2024, complementing its existing digital asset issuance platform called HSBC Orion and its offering for tokenized physical gold. These services together form a complete digital asset offering for HSBC’s institutional clients, according to the firm.
HSBC’s global head of digital assets strategy, John O’Neill, emphasized the bank’s commitment to the development of digital asset markets through these new services. HSBC’s head of digital, data and innovation, Zhu Kuang Lee, highlighted the increasing demand for custody and fund administration of digital assets from asset managers and owners. Lee noted that this market is continually evolving and emphasized the importance of innovation in this space.
The company has been actively seeking talent for its tokenized security division and had previously announced successful testing of tokenized deposits in collaboration with Ant Group, a major Chinese financial services provider.
Hot Take: HSBC Expanding into Digital Asset Custody
HSBC’s move into tokenized securities demonstrates its commitment to meeting the growing demand for digital asset custody and fund administration from institutional clients. By partnering with Metaco and leveraging its existing platforms, HSBC is poised to offer a comprehensive suite of digital asset services to its clients. This expansion into the blockchain and crypto industry reflects HSBC’s recognition of the evolving nature of financial markets and its proactive approach to innovation in response to these changes.
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