British financial giant – HSBC – has announced plans to roll out a new digital assets custody service for institutional clients who invest in tokenized securities.
HSBC, one of the world’s largest global custodians covering more than 90 markets, has partnered with Ripple-owned Metaco, which is an institutional digital asset custody, trading, and DeFi firm based in Switzerland.
As part of HSBC’s new custody service for digital assets, the bank is tapping Harmonize, which is Metaco’s institutional platform.
Once live in 2024, the new custody service is expected to complement HSBC Orion, the bank’s platform for issuing digital assets, in addition to the recently introduced offering for tokenized physical gold, according to the official statement. These platforms will collectively constitute a complete digital asset offering for institutional clients.
Weighing on the development, HSBC’s Chief Digital, Data and Innovation Officer, Securities Services, Zhu Kuang Lee, highlighted the increasing demand for custody and fund administration of digital assets from asset managers and asset owners amidst an evolving market.
HSBC’s goal is to provide a scalable and secure custody infrastructure for the next generation through strategic partnerships, according to the executive. He also stressed that there has never been a more crucial moment for asset servicers to innovate, collaborate, and drive transformation.
The bank’s Global Head of Digital Assets Strategy, Markets, and Securities Services, John O’Neill, also echoed a similar sentiment and stated,
“I’m excited by the forthcoming launch of our new custody service for digital assets, which will complement HSBC Orion, our platform for issuing digital assets, as well as our recent launch of tokenized physical gold. These services underscore HSBC’s commitment to the overall development of digital asset markets.”
HSBC’s foray into the crypto industry dates back to December 2021, when it partnered with Wells Fargo to use a blockchain platform to settle Forex transactions.
The following year, it joined forces with The Sandbox to become the first global bank to enter the Metaverse. Under the deal, HSBC vowed to buy virtual real estate in the form of LAND in a bid to connect and engage with sports, esports, and gaming enthusiasts.
Fast forward to September this year, HSBC teamed up with the blockchain payment system FCF Pay to enable eligible clients to pay their mortgage bills and loans in various cryptocurrencies such as Dogecoin (DOGE) and Shiba Inu (SHIB) in addition to XRP.
The post HSBC Teams Up With Ripple-Owned Metaco for Digital Assets Custody Services appeared first on CryptoPotato.
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