HSBC is reportedly planning the launch of a new platform that will allow institutional clients to hold blockchain-based tokens representing non-crypto assets.
The banking giant has partnered with Swiss digital asset firm Metaco to provide clients with the ability to store traditional assets – not crypto or stablecoins – on a blockchain platform, according to a new press release.
[adinserter block="1"]HSBC says it has already created tokens representing its gold holdings that sit inside a London vault.
Zhu Kuang Lee, chief digital, data and innovation officer at HSBC says,
“We’re seeing increasing demand for custody and fund administration of digital assets from asset managers and asset owners, as this market continues to evolve. Through key partnerships, HSBC is delivering the next-generation custody infrastructure that will be scalable and secure. For asset servicers, there has never been a more important time to innovate, to collaborate and to create change.”
Last year, the bank launched HSBC Orion, its own platform for issuing digital assets. HSBC says the new custody service will complement the Orion platform and form “a complete digital asset offering for HSBC’s institutional clients.”
The bank has not yet revealed how big its market is for the new program of non-crypto blockchain-based assets.
Earlier this year, HSBC launched Bitcoin (BTC) and Ethereum (ETH) exchange-traded fund (ETF) trading services for its institutional clients.
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