HSBC is advancing its presence in the digital assets market with the introduction of an institutional-grade custody service tailored for tokenized securities. This new offering will leverage technology from Metaco, a Swiss crypto safekeeping firm owned by Ripple.
Set to launch in 2024, the custody service will enhance HSBC Orion, the bank’s platform for issuing digital assets, along with a recently introduced service for tokenized physical gold. Zhu Kuang Lee, chief digital, data and innovation officer of Securities Services at HSBC, noted the rising demand for custody and fund administration of digital assets from asset managers and owners. “As this market continues to evolve, HSBC is forging key partnerships to provide a next-generation custody infrastructure that is both scalable and secure,” he said.
The bank clarified that its custody unit will not cover the safekeeping of cryptocurrencies or stablecoins. Instead, it will focus on tokenized securities issued on third-party platforms, such as tokenized bonds on public blockchains or tokenized structured products.
John O’Neill, global head of digital assets strategy at HSBC, expressed enthusiasm for the upcoming custody service, highlighting its synergy with HSBC Orion and the recent launch of tokenized physical gold. “These services highlight HSBC’s dedication to the continued development of digital asset markets,” he remarked.