According to reports, HSBC is aiming to establish a new platform that would allow institutional clients to hold blockchain-based tokens that reflect non-crypto assets.
According to a new press release, the banking behemoth has teamed with Swiss digital asset developer Metaco to give clients the possibility to keep traditional assets — not crypto or stablecoins – on a blockchain platform.
HSBC claims to have already produced tokens representing its gold reserves, which are stored in a London vault.
According to HSBC’s chief digital, data, and innovation officer, Zhu Kuang Lee,
“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.”
HSBC Orion, the bank’s own platform for creating digital assets, was unveiled last year. The new custody service, according to HSBC, will complement the Orion platform and provide “a complete digital asset offering for HSBC’s institutional clients.”
The bank has not disclosed the size of its market for the new non-crypto blockchain-based assets program.
Earlier this year, HSBC launched exchange-traded fund (ETF) trading services for Bitcoin (BTC) and Ethereum (ETH) for its institutional clients.