HSBC has partnered with Metaco, a company associated with Ripple, to introduce custody services for security tokens.
HSBC has collaborated with Metaco, a technology company affiliated with Ripple, to enable institutional investors to securely store tokenized securities on its recently launched custody platform.
investograph 
Global banking giant HSBC is gearing up to launch an institutional custody platform tailored for security tokens. To accomplish this, HSBC has joined forces with Metaco, a tech company affiliated with Ripple. The new digital asset custody service is scheduled for a 2024 rollout and will complement HSBC's existing digital asset issuance platform, HSBC Orion, and its offering for tokenized physical gold, introduced on November 1, 2023. These combined services create a comprehensive digital asset solution for HSBC's institutional clients, showcasing the bank's dedication to fostering the development of digital asset markets, as noted by John O'Neill, HSBC's Global Head of Digital Assets Strategy.
HSBC's decision to enter the digital asset custody arena is driven by the growing demand for secure custody and fund administration services for digital assets, particularly from asset managers and owners. HSBC's Head of Digital, Data, and Innovation, Zhu Kuang Lee, emphasized the ongoing evolution of this market and the necessity for innovative solutions.
It's important to note that HSBC's forthcoming digital asset custody platform will exclusively cover security tokens and will not encompass cryptocurrencies like Bitcoin or stablecoins such as Tether. Unlike pure cryptocurrencies, security tokens represent digital versions of securities issued and transacted on blockchain networks.
HSBC's entry into the realm of tokenized securities is not the bank's first involvement in the blockchain and crypto sector. In fact, HSBC recently revealed successful testing of tokenized deposits in partnership with prominent Chinese financial services provider Ant Group, further underscoring the bank's interest in blockchain technology and digital assets.
