HSBC plans tokenized securities custody service with Ripple’s Metaco

HSBC, one of the world’s largest banks, announced its plans to launch a digital asset custody service focused on tokenized securities, in partnership with Swiss-based crypto custody firm Metaco.

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Fast Facts

• HSBC will work with Ripple Labs-owned Metaco on the custody service, which is expected to launch in 2024, the bank said in a statement on Wednesday.

• The new platform will complement HSBC Orion, an issuance platform for digital assets and tokenized gold, that was launched on Nov. 4.

• HSBC Orion uses distributed ledger technology to issue tokenized shares that represent physical ownership of gold held in the bank’s London vault.

• HSBC joins several other large financial institutions that are exploring blockchain-based tokenization services. In early October, BlackRock tokenized its money market fund shares via JPMorgan’s Ethereum-based Onyx blockchain and Tokenized Collateral network, which were later provided to Barclays in an over-the-counter derivatives deal.

• The third largest banking institution in the U.S., Citigroup, launched Citi Token Services in September, a blockchain-based cross-border payment solution for institutions that uses tokenized deposits and smart contracts for real-time settlements.

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