HSBC Partners with Metaco to Launch New Blockchain-Based Custody Platform
HSBC is reportedly developing a new platform that will allow institutional clients to store blockchain-based tokens representing non-crypto assets. The banking giant has joined forces with Swiss digital asset firm Metaco to offer clients the ability to hold traditional assets on a blockchain platform, as announced in a recent press release.
The new service will enable HSBC clients to store assets such as gold on the blockchain. According to Zhu Kuang Lee, chief digital, data and innovation officer at HSBC, there is a growing demand for custody and fund administration of digital assets from asset managers and owners, prompting the bank to innovate and create change through key partnerships.
New Custody Service Complements HSBC’s Digital Asset Offering
Last year, HSBC launched its own platform for issuing digital assets called HSBC Orion. The newly announced custody service is expected to complement the Orion platform, forming a complete digital asset offering for the bank’s institutional clients.
While HSBC has not disclosed the size of the market for non-crypto blockchain-based assets, it has made significant strides in the digital asset space. Earlier this year, the bank introduced Bitcoin and Ethereum exchange-traded fund (ETF) trading services for its institutional clients.
Hot Take
HSBC is expanding its digital asset services by partnering with Metaco to provide institutional clients with a new platform for holding non-crypto assets on the blockchain. This move demonstrates the bank’s commitment to meeting the evolving demands of its clients and tapping into the growing market for digital asset custody and fund administration.
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