In 2024, HSBC will launch a digital asset custody service catering to institutional clients. Teaming up with Ripple-owned Metaco addresses the rising demand for secure custody of digital assets. HSBC’s Chief Digital Officer highlighted the strategic partnerships driving the initiative, using Metaco’s Harmonize solution.
This new service complements HSBC’s recent tokenized gold system and extends its existing digital assets issuance platform, HSBC Orion. Global Head of Digital Assets Strategy, John O’Neill, expressed excitement, emphasizing HSBC’s commitment to advancing digital asset markets.
Moreover, Metaco’s CEO, Adrian Treccani, stated that there is a growing momentum concerning the tokenization of financial assets. He introduced Metaco Harmonize as a leading market platform for large banks that combines well with governance and risk management systems. Additionally, Treccani sees a huge prospect of reduced costs and new business opportunities in the fast-developing field of tokenized investments.
HSBC Joins Blockchain Revolution
HSBC has become one among numerous large banks, including JP Morgan Chase and Deutsche Bank, that have recently turned to commercialized blockchain implementations. In March, JPMorgan stated that its dollar–backed digital coin, the JPM Coin, processed $1 billion in daily transactions. The two worked together in September when Deutsche Bank partnered with a Swiss fintech company, Taurus.
Moreover, the partnership aims to create digital asset custodial and tokenization services for the bank’s clients. Ripple acquired Metaco for $250 million in May, signaling an increase for the crypto payments expert into institutional custody services. Ripple funded it through a mix of cash and Ripple equity, making Ripple the sole shareholder of Metaco, but the firm still operates as a standalone brand.
“At the time, President Monica Long stated that Ripple is uniquely set to address the growing institutional crypto custody market, expected to reach nearly $10 trillion by 2030.” However, In June, Citigroup, working with Metaco on digital asset custody, started a review of their partnership.
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