Banking giant HSBC Holdings is soon planning to offer digital assets custodial services for assets such as tokenized securities. In a statement on Wednesday, November 8, HSBC announced its collaboration with Metaco, a technology company owned by Ripple Labs Inc., to develop secur...
Banking giant HSBC Holdings is soon planning to offer digital assets custodial services for assets such as tokenized securities. In a statement on Wednesday, November 8, HSBC announced its collaboration with Metaco, a technology company owned by Ripple Labs Inc., to develop secure custody services, with plans for the service to be operational by 2024. The banking giant plans to provide these services to its institutional clients.
HSBC Orion Platform to Lead
This new offering will enhance HSBC’s digital asset issuance platform, HSBC Orion, and its recently launched system for tokenized gold, which leverages distributed ledger technology to represent ownership of physical gold stored in its London vault through digital tokens.
Growing Demand for Digital Assets Custody
As more and more institutional players join the digital assets market, the demand for custodial services is growing equally. Custody services, in particular, have witnessed significant interest from major players in the industry, providing opportunities for startups in the sector.
However, this trend also highlights the challenges that smaller firms encounter when trying to collaborate with large financial institutions. Ripple, based in San Francisco, projected that the institutional crypto custody market could potentially grow to nearly $10 trillion by 2030, emphasizing the substantial potential in this sector.
On the other hand, banks and asset managers have been investing millions of dollars in leveraging blockchain, streamlining their complex processes and reducing costs.