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In a strategic move to cater to the evolving needs of institutional clients, HSBC has announced plans to introduce a cutting-edge digital assets custody service in 2024. This initiative marks a significant step in HSBC’s digital transformation journey and aims to provide comprehensive support for institutional investors engaged in tokenized securities.

HSBC has partnered with Swiss enterprise technology firm Metaco to leverage its institutional platform, Harmonize, as a cornerstone of HSBC’s new digital assets custody service. Harmonize, renowned for its seamless integration capabilities with existing financial systems, will play a pivotal role in HSBC’s innovative approach to custody and fund administration of digital assets.

Upon its launch, HSBC’s digital assets custody service will complement HSBC Orion, the bank’s digital assets issuance platform. It will also enhance HSBC’s recently introduced offering for tokenized physical gold. Together, these components form a holistic digital asset solution designed specifically for HSBC’s institutional clients, reaffirming the bank’s commitment to the continuous development of digital asset markets.

Commenting on this, Zhu Kuang Lee, Chief Digital, Data, and Innovation Officer, Securities Services, HSBC, stated, “We’re seeing increasing demand for custody and fund administration of digital assets from asset managers and asset owners, as this market continues to evolve. Through key partnerships, HSBC is delivering the next-generation custody infrastructure that will be scalable and secure.”

Adrien Treccani, CEO, and Founder of Metaco, expressed excitement about the collaboration, highlighting the importance of innovative custody infrastructure in the evolving landscape of digital assets. He stated, “Custody infrastructure such as Metaco’s Harmonize, which integrates with financial institutions’ existing systems, will be critical to how issuers and investors interact, as capital markets and assets in general continue to be represented on distributed ledgers.”

John O’Neill, Global Head of Digital Assets Strategy, Markets and Securities Services, HSBC, shared his enthusiasm about the upcoming launch, emphasizing its significance in the context of HSBC’s broader digital asset initiatives. He said, “I’m excited by the forthcoming launch of our new custody service for digital assets, which will complement HSBC Orion, our platform for issuing digital assets, as well as our recent launch of tokenised physical gold. These services underscore HSBC’s commitment to the overall development of digital asset markets.”

HSBC Holdings plc, headquartered in London, serves customers worldwide from offices in 62 countries and territories. With assets of $3,021 billion as of September 30, 2023, HSBC stands as one of the world’s largest and most influential banking and financial services organizations.

Photo by Kit Suman on Unsplash

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