In collaboration with the Swiss digital asset firm Metaco, HSBC, the British financial services and banking company, has unveiled its strategic roadmap.
The forthcoming launch in 2024 introduces a custody service tailored for the secure storage of non-cryptocurrency blockchain-based assets.
Specifically designed for institutional clients, this announcement comes hot on the heels of last week’s revelation by HSBC regarding the successful creation of tokens representing physical gold in its London vault — a breakthrough that can be seamlessly traded through the bank’s single-dealer platform software.
Metaco CEO Adrien Triccani posted on X (formerly known as Twitter) about the collaboration.
This move also builds upon HSBC’s 2022 disclosure of HSBC Orion, an in-progress project empowering institutions to issue digital tokens.
The collaboration with Metaco, a technology company acquired by Ripple in September, signifies a significant stride toward the development of requisite blockchain infrastructure for the issuance and trading of these digital assets.
Andrew O’Doherty, Managing Partner of gm3, a web3 professional services firm and former Global Head of Digitisation in Citi Securities Services, expresses optimism regarding this development:
“Following the recent launch of Citi Token Services, it is a hugely encouraging development to see HSBC, another leading global custodian, continuously expand their product offerings in the digital assets space. The potential for atomic settlement and reduced operating overheads are some of the most exciting opportunities on the horizon.”
It is crucial to note that this evolution does not imply the direct trading of, for instance, cryptoadz on traditional stock exchanges.
For institutional investors, the allure of blockchain technology lies in its pillars of security, cost efficiency, authentication, and decentralisation, transcending the flashy realm of high-value PFP NFTs.
This collaboration signals a bullish trend for the broader NFT space, considering Ripple’s recent legal victory where XRP was deemed, in regulatory terms, not classified as a security — a potential strategic advantage in partnering with the traditional finance giant HSBC.
As blockchain technology finds application in areas where its strengths shine, even if less thrilling to speculative interests, widespread adoption is poised for substantial growth.
Stephen Cheung, general partner at WAGMi Ventures expressed:
“Big move for TradFi. Tokenisation of assets has clear benefits for traditional assets. The biggest hurdles are custody and trust in the issuer. It is clear the banks are moving towards RWA tokenisation. The winners will be the first movers.”
The trajectory of these partnerships will undoubtedly be shaped by the ongoing dialogue surrounding regulatory frameworks, making regulatory clarity a linchpin in the transformative journey of blockchain technology across industries.