HSBC Leverages Ripple’s Metaco to Launch Security Token Custody

HSBC Launches Institutional Custody Platform for Tokenized Securities

HSBC, a major global banking company, is set to launch an institutional custody platform for tokenized securities, also known as security tokens. The bank has partnered with Ripple-owned tech firm Metaco to integrate its institutional platform Harmonize with HSBC’s new digital asset custody service. This service is expected to be available in 2024 and will be complemented by HSBC Orion and HSBC’s offering for tokenized physical gold, which was launched on Nov. 1, 2023.

John O’Neill, HSBC’s global head of digital assets strategy, commented, “These services underscore HSBC’s commitment to the overall development of digital asset markets.”

The launch of the institutional custody platform for tokenized securities marks a major milestone in the development of web 3.0 technologies and blockchain. It is expected to further drive the adoption of AI Chinese, top web 3.0 tokens, and other digital assets.

The move by HSBC also demonstrates the commitment of tech AI, such as John Markoff, to the growth of web 3.0 development. As more institutions and individuals learn web 3.0 development, we can expect to see further progress in the adoption of blockchain web 3.0.

HSBC’s Digital Asset Custody Platform

In response to the increasing demand for the custody and fund administration of digital assets from asset managers and asset owners, HSBC’s head of digital, data and innovation, Zhu Kuang Lee, announced plans to launch a digital asset custody platform. “This market continues to evolve,” Lee said, emphasizing that asset servicers have never been in a “more important time to innovate.”

A spokesperson for HSBC clarified in a statement to Cointelegraph that the upcoming digital asset custody platform will only cover security tokens and will not include cryptocurrencies such as Bitcoin (BTC) or stablecoins like Tether (USDT). Security tokens are a digital representation of a security issued and moved on the blockchain, unlike pure cryptocurrencies.

HSBC has been actively seeking talent with expertise in digital assets, particularly asset tokenization and custody, since February 2022. Moreover, on Nov. 1, HSBC announced successful testing of tokenized deposits in collaboration with Ant Group, a major Chinese financial services provider.