- HSBC, one of the UK’s largest banks, announced that it will work with Metaco, a technology company owned by Ripple Labs, on digital asset custody services.
One of the biggest banks in the UK, HSBC, has reportedly announced that it will collaborate with Ripple Labs-owned Metaco on digital asset custody services, which it plans to provide in 2024.
As a result, HSBC’s most recent financial move will be to provide custody services for digital assets like tokenized securities to corporate clients.
At this point, HSBC clients’ assets will be safeguarded by Metaco, a Swiss-based Ripple firm.
The bank claimed that this agreement marked the completion of HSBC’s tokenized physical gold service, which was introduced on November 1, 2023, and the digital asset issuing platform known as HSBC Orion.
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In 2024, HSBC intends to introduce custody services for business clients.
HSBC clarified in its statement that “tokenized securities” are currently included in custody services, but that stablecoins and cryptocurrencies are not.
According to John O’Neill, HSBC’s head of global digital asset strategy, “these services underline HSBC’s commitment to the overall development of digital asset markets.”
As you may recall, in May of this year, Ripple paid $250 million to acquire Metaco. Additionally, Ripple said that it believes the market for institutional cryptocurrency custody alone may grow to about $10 trillion by 2030.
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