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HSBC, one of the world’s largest banks, revealed that for now, its custody plans include “tokenized securities issued on third-party platforms.”
HSBC Holdings (LSE: HSBA), in partnership with Ripple Labs Subsidiary Metaco has announced plans to launch a digital asset custody service for institutional clients. The service will offer custody for assets such as tokenized securities and is expected to launch next year. It will complement HSBC’s Orion digital asset issuance platform and recently launched Gold tokenization platform to create a complete digital asset offering for institutional clients.
Zhu Kuang Lee, Chief Digital, Data and Innovation Officer, Securities Services, HSBC Said Gifted:
“We are seeing increasing demand for digital asset custody and fund administration from asset managers and asset owners as this market continues to evolve. Through key partnerships, HSBC is delivering next generation custody infrastructure that will be scalable and secure. For asset service providers, there has never been a more important time to innovate, collaborate and drive change.
HSBC, one of the largest banks in the world, revealed that right now, its custody plans include “tokenized securities issued on third-party platforms, for example, private and/or public blockchain compatible tokenized bonds.” or token structured products (not for custody of cryptocurrencies or stablecoins).”
Metaco CEO and Founder Adrian Treccani also commented on the partnership: “Metaco is excited to work with HSBC as it continues to explore the applications of DLT in asset creation and custody. Metaco’s custody infrastructures such as Harmonize, which Integrates with existing systems of financial institutions will be critical to how issuers and investors interact, as capital markets and assets in general are represented on distributed ledgers.
The banking and finance industry is gradually integrating blockchain technology with tokenization and digital asset custody, which is the focus of many new products and offerings. Wave Estimate The institutional crypto custody market will reach approximately $10 trillion by 2030.
So far, major financial institutions such as JP Morgan and Deutsche Bank have used and commercialized blockchain applications. In October JPMorgan revealed that its JPM Coin payments system now handles $1 billion of transactions per day. Earlier, in September, Deutsche Bank had announced a partnership with Swiss fintech firm Taurus to develop digital asset custody and tokenization services for its clients.
Mercy Mutanya is a tech enthusiast, digital marketer, author and IT Business Management student. She enjoys reading, writing, doing crossword puzzles, and watching her favorite TV series.
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