HSBC Expands Blockchain Foray with New Security Token Custody Service
In a move signalling the financial sector's growing integration with blockchain technology, HSBC is set to introduce a new service for institutional clients, allowing them to securely manage and store tokenized securities. This initiative, slated for a 2024 rollout, is the result of a collaboration with the Swiss-based digital infrastructure firm Metaco.
HSBC's upcoming service will focus on security tokens, which are digital representations of traditional financial instruments like stocks or bonds, rather than on cryptocurrencies. This announcement follows on the heels of HSBC's recent venture into tokenized gold offerings, demonstrating the bank's commitment to embracing blockchain innovations.
Metaco, a company under Ripple's umbrella since 2015, has been a prominent player providing digital asset solutions to a variety of global clients including banks, exchanges, and corporate entities. The banking giant's foray into digital asset custody reflects a broader trend within the industry to adopt and explore blockchain capabilities beyond the realm of cryptocurrencies.