HSBC Embraces the Future of Finance with Digital Asset Custody Service

HSBC, one of the world’s largest banking giants, is set to pioneer the future of finance by offering a custody service for digital assets, including tokenized securities. The move marks a significant step forward for the traditional banking sector into the realm of blockchain technology and digital finance.

In collaboration with Metaco, a Swiss-based institutional digital asset custody, trading, and decentralized finance (DeFi) firm owned by crypto payments company Ripple, HSBC plans to introduce its latest blockchain initiative in 2024. This service, tailored for its institutional clientele, aims to meet the growing demand for custody and fund administration of digital assets from asset managers and owners.

HSBC’s Chief Digital, Data, and Innovation Officer, Securities Services Zhu Kuang Lee, highlighted the increasing market demand, stating, “We’re seeing increasing demand for custody and fund administration of digital assets as this market continues to evolve.” He emphasized that HSBC is focused on delivering a next-generation custody infrastructure that is both scalable and secure, made possible through strategic partnerships.

The newly announced service utilizes Metaco’s Harmonize solution and serves as an extension to HSBC’s existing digital assets issuance platform, HSBC Orion. This initiative aligns with HSBC’s recent introduction of a tokenized gold system, leveraging distributed ledger technology to digitize gold ownership.

Global Head of Digital Assets Strategy, Markets, and Securities Services, John O’Neill, expressed his excitement about the upcoming launch, stating, “I’m excited by the forthcoming launch of our new custody service for digital assets, which will complement HSBC Orion, our platform for issuing digital assets, as well as our recent launch of tokenized physical gold.” He emphasized these services underline HSBC’s commitment to the overall development of digital asset markets.

Metaco’s founder and CEO, Adrien Treccani, highlighted the growing momentum behind the tokenization of financial and real-world assets. He emphasized the potential for significant cost efficiencies and new revenue streams for regulated financial institutions. Treccani described Metaco Harmonize as the market-leading institutional-grade digital asset custody and orchestration platform, tailored for top-tier banks and global custodians. The platform is designed for seamless integration with existing governance and risk management processes, enabling financial institutions to build scalable infrastructure for experiments with tokenized assets.

HSBC’s foray into digital asset custody services signifies a paradigm shift in the financial industry, embracing emerging technologies to meet the evolving needs of institutional clients and adapt to the changing landscape of finance. As the launch date approaches, the industry eagerly anticipates the impact of HSBC’s innovative approach on the future of digital finance. Read Similar Story

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