HSBC has launched a new service that uses technology from Swiss cryptocurrency custody company Metaco: custody services for tokenized assets. In addition to its digital asset issuance platform, HSBC Orion, and its tokenized physical gold offering, the bank will store bonds and other assets on Metaco's Harmonize platform. It's good to remember that Metaco was recently bought by Blockchain company Ripple.
For major institutions like banks, tokenized securities—regulated assets like bonds and shares created on a blockchain—are crucial to trading, payments, and other operations.
Zhu Kuang Lee, Chief Digital, Data, and Innovation Officer for Securities Services at HSBC, indicated that digital asset custody and fund administration are becoming more and more important.
Adrien Treccani, CEO of Metaco, views the deal as a sign that financial institutions are broadening their digital asset activities to include custody, issuance, trading, and settlement of tokenized assets.
The program is an additional advancement in HSBC's digital asset strategy, which also gives Hong Kong clients the ability to trade exchange-traded funds (ETFs) and bitcoin.
