HSBC's collaboration with Metaco aims to meet the increasing demand for secure custody services for digital assets
HSBC, one of the world's largest banking and financial services organizations, is set to launch a new custody service for digital assets in collaboration with Ripple-owned tech firm, Metaco. The new service, which is part of HSBC's broader blockchain strategy, will debut in 2024.
The partnership with Metaco, a leading provider of security-critical infrastructure for digital assets, will see the integration of Metaco's institutional platform, Harmonize, with HSBC's new custody service. This move is in response to increasing demand for custody and fund administration of digital assets from asset managers and owners.
Interestingly, the upcoming custody platform will focus on tokenized securities and will not include cryptocurrencies like Bitcoin and stablecoins like Tether. This initiative highlights HSBC's commitment to the development of digital asset markets, particularly in the area of tokenized securities.
The new service will complement HSBC's existing digital assets issuance platform, HSBC Orion, and its offering for tokenized physical gold. This strategic move is seen as a significant step in HSBC's ongoing efforts to embrace blockchain technology and digital assets.
This development is a clear indication of the growing interest and investment in digital assets and blockchain technology by major financial institutions. It also underscores the increasing demand for secure and reliable custody services for digital assets, particularly tokenized securities. As such, other financial institutions may follow suit, leading to further growth and development in the digital asset markets.