HSBC and Metaco Join Forces to Launch Tokenized Securities in 2024
HSBC, a global banking giant, has revealed its plans to introduce a cutting-edge digital assets custody service designed exclusively for institutional clients seeking to invest in tokenised securities. This latest development is part of HSBC’s ongoing efforts to expand its foothold in digital assets, and it is set to go live in 2024.
The digital assets custody service is poised to complement HSBC Orion, the bank’s established platform for issuing digital assets. Furthermore, it will enhance HSBC’s recently launched solution for tokenised physical gold. These offerings create a comprehensive digital asset ecosystem tailored for HSBC’s institutional clients.
To bring this initiative to fruition, HSBC is collaborating with Metaco, a Swiss enterprise technology company whose institutional platform, Harmonize, will play a pivotal role in HSBC’s digital assets custody service. Harmonize, renowned for its ability to unify the security and management of digital asset operations, is a testament to Metaco’s commitment to ensuring the highest standards of security and agility in digital assets.
While HSBC remains cautious about venturing into the realm of cryptocurrencies due to regulatory uncertainties, its foray into tokenised securities highlights its dedication to meeting the evolving demands of asset managers and asset owners in the rapidly evolving digital asset landscape.
Tokenised securities, underpinned by blockchain technology, represent a pivotal development in the financial industry. These digital representations of real-world assets, including stocks, ETFs, and bonds, provide new opportunities for efficiency and financial accessibility.
1/3 đź“°@HSBC announced that it is working with @metaco_sa as it plans to launch a new digital assets custody service for institutional clients who invest in tokenised securities.
3/3 Metaco Harmonize™ remains the market-leading institutional-grade digital asset custody and orchestration platform, uniquely fit for the stringent requirements of top tier banks and global custodians. https://t.co/gD43cI748B
Metaco CEO and Founder Adrien Treccani expressed excitement about the partnership with HSBC, emphasising the importance of custody infrastructure like Harmonize in facilitating interactions between issuers and investors, particularly as capital markets increasingly transition to distributed ledgers.
HSBC’s move to offer custody services for tokenised securities aligns with the growing trend among asset managers to explore digital asset custody and fund administration. These innovations are gaining traction across the financial sector, driven by the potential for greater efficiency and accessibility.
This initiative is a significant step forward for HSBC, which had previously launched the HSBC Orion platform, enabling institutions to issue digital bonds. The recent launch of tokenised physical gold further solidifies HSBC’s position as a forward-thinking player in the digital asset space.
As the digital asset landscape continues to evolve, HSBC’s commitment to nurturing and advancing digital asset markets is evident through its strategic partnerships and groundbreaking solutions. While HSBC remains cautious in navigating the uncharted waters of cryptocurrencies, its focus on tokenised securities showcases its unwavering dedication to innovation and excellence in financial services.
In collaboration with Metaco, HSBC is poised to make its mark in tokenised securities, offering institutional clients secure and scalable custody solutions as part of its ongoing mission to shape the future of finance.
