HSBC, one of the world’s largest banks, announced its plans to launch a digital asset custody service focused on tokenized securities, in partnership with Swiss-based crypto custody firm Metaco.

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Fast Facts

  • HSBC will work with Ripple Labs-owned Metaco on the custody service, which is expected to launch in 2024, the bank said in a statement on Wednesday.
  • The new platform will complement HSBC Orion, an issuance platform for digital assets and tokenized gold, that was launched on Nov. 4.
  • HSBC Orion uses distributed ledger technology to issue tokenized shares that represent physical ownership of gold held in the bank’s London vault.
  • HSBC joins several other large financial institutions that are exploring blockchain-based tokenization services. In early October, BlackRock tokenized its money market fund shares via JPMorgan’s Ethereum-based Onyx blockchain and Tokenized Collateral network, which were later provided to Barclays in an over-the-counter derivatives deal.
  • The third largest banking institution in the U.S., Citigroup, launched Citi Token Services in September, a blockchain-based cross-border payment solution for institutions that uses tokenized deposits and smart contracts for real-time settlements.

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