HSBC Hong Kong Set To Allow Asset Tokenization In 2024
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HSBC Hong Kong Set To Allow Asset Tokenization In 2024

HSBC Hong Kong is set to double down on asset tokenization as part of the bank’s development strategy for the current year. 

HSBC’s Hong Kong investments head, Sami Abouzahr, says asset tokenization is one of the top priorities for the bank for this year.

During an interview with the Hong Kong Economic Journal, HSBC Hong Kong head of investments and wealth solutions Sami Abouzahr revealed that the bank is actively studying the potential introduction of asset tokenization technology.

Although Abouzahr did not delve into specifics, he highlighted that the initiative aims to provide customers with new opportunities to invest in both physical and virtual assets. 

The goal is to ensure that these investment products adhere to regulatory requirements while broadening accessibility to a wider range of investors, Abouzahr added.

See Also: HTX Withdraws License Application From Hong Kong SFC

Tokenization technology involves converting physical or virtual assets into digital tokens on a blockchain network. 

By leveraging this technology, HSBC seemingly wants to expand its reach in the Hong Kong market, which attracts more and more venture capital for crypto-related ventures.

Abouzahr added that HSBC Hong Kong’s focus on tokenization extends beyond catering solely to professional investors. 

Instead, the bank now wants to make these investment avenues accessible to a broader spectrum of customers in the region. However, it’s unclear when exactly the bank plans to roll out these services.

HSBC’s venture into the realm of blockchain and digital assets has already shown signs of momentum. 

In early February, the bank led a funding round for MediConCen, a blockchain insurance startup, which raised a total of $6.85 million in the latest deal. 

The investment aims to streamline and expedite the claims process within the insurance sector. 

Apart from HSBC, other investors such as G&M Capital, ParticleX, and Wings Capital Ventures also participated in the funding round.

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