HSBC plans to launch a tokenized securities custody service for institutional clients in collaboration with Metaco, expanding on its current HSBC Orion platform for digital asset issuance and the tokenization of physical gold. The platform will not include custody of cryptocurrencies or stablecoins, but will focus on securities issued on third-party platforms.
Expansion in Digital Asset Services
HSBC, one of the world’s largest banks, is preparing to launch a tokenized securities custody service for its institutional clients. In partnership with Metaco, a Swiss specialist in safeguarding cryptocurrencies, this service complements the bank’s recently established offering of physical gold tokenization.
The blockchain company Ripple acquired Metaco for $250 million in May.
Expected to launch in 2024, this new service will be integrated into the HSBC Orion platform dedicated to digital asset issuance. This initiative is part of HSBC’s global strategy to offer a comprehensive solution for digital assets to its institutional clients. It reflects the bank’s commitment to the development of digital asset markets and addresses the growing need for tokenization in the financial industry.
HSBC’s Digital Strategy Without Cryptocurrencies
HSBC has clarified that the upcoming service will focus on “tokenized securities issued on third-party platforms, such as blockchain-compatible private and/or public tokenized bonds or structured products,” and will not include custody of cryptocurrencies or stablecoins. In September, a joint effort between HSBC and Fireblocks was reported, highlighting the involvement of the bank’s innovation team in this field.
The CEO and founder of Metaco, Adrien Treccani, emphasized the ambition to provide the most robust digital asset custody platform in the market, with the support of Ripple. With Ripple’s acquisition of Metaco for $250 million in May, the path is set for significant evolution in digital custody services at HSBC. John O’Neill, Global Head of Digital Asset Strategy at HSBC, sees these services as evidence of the bank’s commitment to the development of digital asset markets.
