Banking giant HSBC has plans to offer a digital asset custody service for institutional clients. The banking institution’s focus will be tokenized securities. To offer the service, HSBC will work together with Metaco, which is owned by Ripple. The information was published by Coindesk on November 8.
According to the publication, the bank reported that, when it comes into operation next year, the custody service will complement HSBC Orion. John O’Neill, global head of digital asset strategy, markets and securities services at HSBC highlighted the complement of services in a statement.
The service “will complement HSBC Orion, our platform for issuing digital assets, as well as our recent launch of tokenized physical gold,” it said. “These services highlight HSBC’s commitment to the overall development of digital asset markets,” he added.
According to HSBC, its custody plans currently include “tokenized securities issued on third-party platforms, for example, private and/or public blockchain-compatible tokenized securities or tokenized structured products (not for custody of cryptocurrencies or stablecoins).” .
A partner in the new service, Metaco was purchased by Ripple in May for a value of US$250 million. In its announcement at the time, Ripple Labs highlighted that it was taking on the cryptocurrency custody market with the acquisition of Metaco, a Swiss provider of digital asset custody and tokenization technology.
According to the company, with the acquisition, Ripple will expand its enterprise offerings, providing customers with the technology for custody, issuance and settlement of any type of tokenized asset.
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