HSBC Unveils Plans for New Digital Assets Custody Service Launch

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HSBC has unveiled plans to introduce a new digital assets custody service tailored for institutional clients engaged in tokenized securities investments. Expected to go live in 2024, this service will complement HSBC Orion, the bank’s digital asset issuance platform, and its recently launched offering for tokenized physical gold. The combined suite aims to provide a comprehensive digital asset solution for HSBC’s institutional clientele.

To implement this initiative, HSBC is collaborating with Swiss enterprise tech firm Metaco and leveraging its institutional platform, Harmonize. Metaco’s Harmonize solution facilitates the consolidation of security and management aspects of digital asset operations, contributing to HSBC’s new custody service for digital assets.

Zhu Kuang Lee, Chief Digital, Data, and Innovation Officer at Securities Services, HSBC, highlighted the growing demand for custody and fund administration of digital assets among asset managers and owners. By forging strategic partnerships, HSBC aims to establish a next-generation, scalable, and secure custody infrastructure to meet the evolving needs of asset servicers.

Adrien Treccani, CEO and Founder of Metaco expressed excitement about collaborating with HSBC and contributing to exploring distributed ledger technology (DLT) applications in asset creation and custody. He emphasized the critical role of custody infrastructure, such as Metaco’s Harmonize, in facilitating interactions between issuers and investors as capital markets and assets transition to distributed ledgers.

John O’Neill, Global Head of Digital Assets Strategy, Markets, and Securities Services at HSBC, expressed enthusiasm about the forthcoming launch of the new custody service for digital assets. He underscored how these services, along with HSBC Orion and tokenized physical gold, reflect the bank’s commitment to advancing the development of digital asset markets.

As one of the world’s largest global custodians, HSBC covers over 90 markets, positioning itself as a key player in the rapidly evolving landscape of digital asset services.