HSBC, one of the world’s largest banks, is set to launch a custody service for tokenized real world assets such as securities, in a service that is aimed at institutional clients who want to securely store digital assets.
The bank will partner with Metaco, a technology firm owned by Ripple Labs, to provide the custody service, which is expected to launch in 2024. The service will complement HSBC’s digital assets issuance platform, HSBC Orion, along with the bank’s system to issue tokenized gold held in its London vault, which was launched last week.
HSBC is one of the latest big financial institutions to adopt blockchain-based applications, after years of experimenting with the technology. Other examples include JPMorgan, which uses its own blockchain to settle collateral for clients, and Euroclear, which launched platform to issue traditional securities using blockchain.
According to the bank, its custody plans currently involve “tokenized securities issued on third-party platforms” such as private and public blockchain-compatible tokenized bonds, but don’t include custody for stablecoins or cryptocurrencies.
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- Source: https://www.cryptocompare.com/email-updates/daily/2023/nov/09/
