HSBC to Launch Blockchain-Based Asset Platform for Institutional Clients

HSBC, one of the largest banking giants, is reportedly planning to launch a new platform that will enable institutional clients to hold blockchain-based tokens representing non-crypto assets. The bank has partnered with Swiss digital asset firm Metaco to provide clients with the ability to store traditional assets, such as gold, on a blockchain platform.

According to HSBC, the new platform will complement its existing digital asset offering, HSBC Orion, and will provide a complete solution for its institutional clients. The bank has already created tokens representing its gold holdings, which are securely stored in a London vault.

Zhu Kuang Lee, the chief digital, data, and innovation officer at HSBC, highlighted the increasing demand for custody and fund administration of digital assets from asset managers and owners. He emphasized the importance of innovation, collaboration, and change in the asset servicing industry.

In addition to the new platform, HSBC recently launched Bitcoin and Ethereum exchange-traded fund (ETF) trading services for its institutional clients. The bank has not disclosed the size of the market for its non-crypto blockchain-based assets program.

In conclusion, HSBC's upcoming blockchain-based asset platform will provide institutional clients with the opportunity to securely hold non-crypto assets on a blockchain. This move aligns with the growing demand for digital asset custody and administration services. With its existing digital asset offering and the new platform, HSBC aims to deliver a comprehensive solution for its institutional clients.