The major global bank, HSBC, has teamed up with a trading firm Metaco to connect its institutional platform, Harmonize, with a new service for safely storing digital assets. Metaco is owned by Ripple.
This service is set to become available in 2024 and will work alongside HSBC’s existing platform for issuing digital assets called HSBC Orion.
Additionally, they recently introduced a service for trading tokenized physical gold on November 1, 2023. These combined services will provide a comprehensive digital asset solution for HSBC’s institutional clients.
In simpler terms, HSBC is partnering with a tech company to create a platform for securely storing digital assets, and they will offer this service to their institutional clients in 2024. They already have other services for issuing digital assets and trading tokenized gold, making it a complete package for their institutional customers.
Zhu Kuang Lee, HSBC’s Chief Digital, Data, and Innovation Officer, stated that “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.” He added, “Through key partnerships, HSBC is delivering the next-generation custody infrastructure that will be scalable and secure.”
HSBC decided to offer digital asset custody services because they noticed a growing need from asset managers and owners who wanted a secure way to store and manage their digital assets. This decision was driven by Zhu Kuang Lee, HSBC’s head of digital, data, and innovation.