HSBC’s New Digital Asset Custody Service
HSBC, a global financial giant, has announced plans to introduce a digital assets custody service for institutional clients who invest in tokenized securities. The bank has partnered with Ripple-owned Metaco, an institutional digital asset custody, trading, and DeFi firm based in Switzerland.
HSBC’s Tokenized Securities Custody Service
The new custody service for digital assets will leverage Harmonize, Metaco’s institutional platform. Once live in 2024, the new service is expected to complement HSBC Orion, the bank’s platform for issuing digital assets, and the recently introduced offering for tokenized physical gold. These platforms will together constitute a complete digital asset offering for institutional clients.
Zhu Kuang Lee, HSBC’s Chief Digital, Data and Innovation Officer, Securities Services, highlighted the increasing demand for custody and fund administration of digital assets from asset managers and owners amidst an evolving market. The goal is to provide a scalable and secure custody infrastructure for the next generation through strategic partnerships.
HSBC’s Crypto Initiatives Timeline
In December 2021, HSBC partnered with Wells Fargo to use a blockchain platform to settle Forex transactions. The following year, it joined forces with The Sandbox to become the first global bank to enter the Metaverse by buying virtual real estate in the form of LAND. In September this year, HSBC teamed up with FCF Pay to enable eligible clients to pay their mortgage bills and loans in various cryptocurrencies such as Dogecoin (DOGE) and Shiba Inu (SHIB) in addition to XRP.
Hot Take: HSBC’s Commitment to Digital Asset Markets
HSBC’s move into crypto illustrates its commitment to the overall development of digital asset markets. With its new custody service and strategic partnerships, the bank is poised to meet the increasing demand for digital asset custody from institutional clients.
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