HSBC to Launch Digital Assets Custody Service
HSBC, a global financial institution with a presence in over 60 countries and assets exceeding $3 trillion, has revealed its plans to introduce a digital asset custody service for institutional clients. The new service is set to debut in 2024 and will complement the bank’s existing digital offerings, providing a comprehensive asset management suite for its customers worldwide.
The decision to launch this platform was driven by increasing demand from HSBC’s customers, particularly asset managers and owners who are seeking custody and fund administration services for digital assets as the market continues to evolve.
Metaco’s Role in Development
To bring this initiative to fruition, HSBC has partnered with Metaco, a Swiss-based company that offers core services for managing digital assets. The bank will utilize Harmonize, a comprehensive suite that delivers custody, tokenization, trading, and asset management services for regulated and non-regulated digital assets. Other major financial institutions such as BNP Paribas, Societe Generale, and Citi have also teamed up with Metaco to integrate Harmonize into their operations.
Adrien Treccani, founder and CEO of Metaco, emphasized the importance of custody infrastructure like Harmonize in facilitating interaction between issuers and investors as capital markets continue to be represented on distributed ledgers.
Ripple’s Acquisition of Metaco
It is noteworthy that Ripple, a cryptocurrency and payments platform, acquired Metaco in March for $250 million with the aim of targeting the institutional custody market. Ripple’s president Monica Long expressed her anticipation of the industry reaching $10 trillion by 2030.
Hot Take: HSBC Expands Digital Offerings
HSBC’s move to launch a digital assets custody service reflects the growing demand for secure custodial solutions in the evolving landscape of digital assets. By partnering with Metaco and leveraging its expertise in managing digital assets through Harmonize, HSBC is poised to meet the needs of institutional clients seeking comprehensive asset management solutions. This strategic initiative also underscores the increasing convergence of traditional financial institutions with emerging technologies in the digital asset space.
By
By
By
By
By