The well-known international bank HSBC today announced a collaboration with Ripple-owned software company Metaco to launch an institutional custody platform for tokenized assets.
The bank plans to deliver the new service in 2024, coinciding with the introduction of its recently launched gold tokenization solution and its current digital asset issuance platform, HSBC Orion. At the end of 2022, the bank had an impressive $9.1 trillion in custody.
The “growing demand for custody and fund administration of digital assets from asset managers and asset owners” was the driving force behind the decision, according to Zhu Kuang Lee, chief digital, data, and innovation officer at HSBC.
Ripple and HSBC Join Forces: Tokenized Securities Custody in 2024,Ripple and HSBC Join Forces: Tokenized Securities Custody in 2024
Digital representations of physical assets, including stocks, bonds, or exchange-traded funds (ETFs), can be produced using tokenized securities, which are frequently built on blockchain technology.
Other asset classes that can be securitized, like real estate, can also have tokenized securities created for them. In the latter case, a company looking to raise capital could choose to issue digital tokens that represent fractionalized ownership of the company rather than issuing stock.
HSBC seeks infrastructure support from Metaco
HSBC is working with Metaco, which Ripple purchased for $250 million in May of this year, to deliver Harmonise, an institutional platform that facilitates safe and uniform management of digital assets, as part of its new offering.
Adrien Treccani, CEO and founder of Metaco, stated in a statement, “Metaco is excited to be working with HSBC as it continues to explore the applications of DLT in asset creation and custody.”
As capital markets and assets in general continue to be represented on distributed ledgers, custody infrastructure, such as Metaco’s Harmonise, which connects with financial institutions’ current systems, will be important to how issuers and investors interact.”
Ripple and HSBC Join Forces: Tokenized Securities Custody in 2024,Ripple and HSBC Join Forces: Tokenized Securities Custody in 2024,Ripple and HSBC Join Forces: Tokenized Securities Custody in 2024 , Ripple coin Crypto news, Ripple coin News