According to CoinDesk, HSBC, one of the world's largest banks, announced plans to launch a digital-assets custody service for institutional clients, focusing on tokenized securities. The bank is partnering with Swiss crypto safekeeping specialist Metaco, and the service is expected to go live in 2024. The custody service will complement HSBC Orion, the London-based bank's platform for issuing digital assets, as well as a recently introduced offering for tokenized physical gold. Together, these platforms will form a complete digital-asset offering for institutional clients.
Banks and financial institutions are increasingly bringing a range of real-world assets (RWA) onto blockchains, both private ledgers and public networks like Ethereum, in a process known as tokenization. Last month, regulators in Singapore, Japan, the U.K., and Switzerland announced plans to test tokenization for fixed income, foreign exchange, and asset management products. HSBC's custody plans currently involve tokenized securities issued on third-party platforms, such as private and/or public blockchain-compatible tokenized bonds or tokenized structured products, but not cryptocurrencies or stablecoins.
In September, CoinDesk reported that HSBC was working with Fireblocks, another custody technology firm. A person familiar with the matter said HSBC's work with Fireblocks involved the bank's innovation team. John O'Neill, HSBC's global head of digital assets strategy, markets and securities services, said in a statement that the new custody service for digital assets will complement HSBC Orion and the recent launch of tokenized physical gold. He added that these services underscore HSBC's commitment to the overall development of digital asset markets.
