Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
HSBC to round out tokenization offering via custody play

HSBC to round out tokenization offering via custody play

BlockworksBlockworks2023/11/08 20:18
By:Blockworks

Banking giant is set to collaborate with custody infrastructure company Metaco to safekeep tokenized assets for institutional clients

HSBC is getting set to offer digital assets custody services to institutional investors just a week after enabling the ownership of tokenized gold.

The London-based company’s upcoming capability would allow for the safe-keeping of tokenized securities — such as bonds and other products — issued on third-party platforms.

The offering, which would not custody other crypto assets or stablecoins, is expected to go live in 2024, the company said Wednesday.

HSBC is for now steering clear of custodying crypto assets beyond tokenized securities as such currencies remain “to a large degree unregulated,” a person familiar with the matter told Blockworks. 

The financial giant is set to collaborate with custody infrastructure firm Metaco, whose Harmonize product was launched in 2021 to help institutions with tokenization , crypto custody and smart contract management.

Harmonize integrates with the existing systems of financial institutions, Metaco CEO Adrien Treccani said in a statement — adding it will be a critical tool “as capital markets and assets in general continue to be represented on distributed ledgers.”

The upcoming launch comes as asset managers have shown an increased appetite for digital assets custody and fund administration, according to HSBC . 

More companies have embraced tokenization as financial leaders — such as BlackRock CEO Larry Fink — have touted the opportunity such versions of securities present, including driving efficiencies and increasing access.   

Various projects have sought to offer easier access to the yields of US Treasury securities, for example.

Read more: TradFi, DeFi convergence continues through tokenizing real-world assets  

John O’Neill, HSBC’s head of digital assets strategy, noted in a statement that the upcoming custody service highlights its “commitment to the overall development of digital asset markets.”

The firm revealed its intention in November 2022 to launch tokenization platform HSBC Orion — on which institutions can issue digital bonds. The firm said last week that tokenized physical gold — held in HSBC’s London vault — can now be traded between HSBC and institutional investors through the HSBC Evolve platform.

An HSBC spokesperson did not comment on what other crypto-related capabilities the bank could seek to offer going forward.

Don’t miss the next big story – join our  free daily newsletter .

Follow Sam Bankman-Fried’s trial with the latest news from the courtroom . 

Tags
  • Custody
  • Gold
  • HSBC
  • Tokenization
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Ether gains momentum as capital shifts from bitcoin and derivatives activity increases

Capital flows are shifting from bitcoin to ether, with derivatives market activity signaling growing confidence in ether’s near-term upside, analysts said.Ether has surged over 6% while in the past 24 hours, while bitcoin saw a slight decline, as open interest and demand for call options hit record highs for the second-largest cryptocurrency by market cap.

The Block2024/11/25 18:00

WisdomTree registers XRP ETF entity in Delaware: report

WisdomTree, an issuer of exchange-traded funds, registered an XRP ETF entity in Delaware.The move signals that the fund manager will likely file an S-1 registration with the SEC.

The Block2024/11/25 18:00

BREAKING: MicroStrategy Bought Bitcoin (BTC)! Michael Saylor Reveals His Latest Purchases!

MicroStrategy purchased an additional 55,500 Bitcoins for $5.4 billion.

Bitcoinsistemi2024/11/25 17:55