- HSBC, a major bank, will launch an institutional-grade custody service for digital assets in 2024.
- The custody platform is developed in partnership with Metaco, a Swiss digital asset security company.
- It will securely store tokenized securities on blockchain networks, including bonds, funds, and structured products.
HSBC, one of the world’s largest banks, announced plans to launch an institutional-grade custody service for digital assets in 2024. The service will enable institutional investors to safely store tokenized securities on blockchain networks.
The custody platform is being developed in partnership with Metaco, a Swiss digital asset security company. It will provide secure storage and transaction processing for assets like tokenized bonds, funds, and structured products issued on public and private blockchains.
HSBC will focus on tokenized securities
HSBC stated the service will focus on tokenized securities, not cryptocurrencies or stablecoins. It complements the bank’s existing digital asset initiatives—HSBC Orion for issuing tokens and a platform to tokenize gold. Together, these make up a complete digital asset ecosystem for institutional clients.
The move aligns with growing interest from banks worldwide in bringing traditional assets like bonds and securities on-chain through tokenization.
It involves representing real-world assets digitally on a blockchain as tokens. Regulators in major financial hubs like Singapore, Japan, the UK, and Switzerland recently announced plans to test asset tokenization.
“This service will complement HSBC Orion, our platform for issuing digital assets, as well as our recent launch of tokenized physical gold,” said John O’Neill, HSBC’s Global Head of Digital Assets Strategy. “These services underscore HSBC’s commitment to the overall development of digital asset markets.”
The custody platform will give institutions a regulated, secure avenue to gain exposure to or participate in digital asset markets as they emerge. It builds on HSBC’s blockchain and tokenization initiatives to position the bank as an early mover in institutional digital asset services.
With MetaCo’s custody technology integrated with its own token issuance and asset tokenization platforms, HSBC aims to provide clients with an end-to-end regulated solution for digitizing assets.
The bank highlighted increasing client interest across asset managers, insurers, and corporate treasurers in safely accessing blockchain-based securities.