HSBC launches tokenized gold trading for Hong Kong retail investors

27.03.2024 - 11:20

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2 min

What’s new? HSBC Bank has launched a tokenized gold trading service for Hong Kong retail investors. The HSBC Gold Token asset is issued on the bank’s own Orion digital asset platform and is available via its website and mobile app. The bank noted that the HSBC Gold Token was the first real-world retail tokenized asset (RWA) in Hong Kong to be approved by the Securities and Futures Commission (SFC).

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What else is known? HSBC announced the placement of tokenized gold in November last year. The product became part of the Orion digital asset custody platform, which was developed by HSBC in partnership with Swiss custodian Metaco. The latter is a subsidiary of Ripple Labs, which developed the payment protocol of the same name and the XRP token, which is the seventh largest cryptocurrency by capitalization.

Under the new platform, the bank provides custody for digital assets issued on third-party platforms such as tokenized bonds of private or public companies and tokenized structured products.

Last June, HSBC allowed customers to trade shares of exchange-traded funds (ETFs) based on BTC and ETH listed on Hong Kong’s HKEX exchange, and in September it began accepting cryptocurrency mortgage payments through FCF PAY.

At the same time, back in March, the bank restricted the purchase of cryptocurrencies using cards. In 2022, HSBC participated in a trial of a global network of national cryptocurrencies led by SWIFT.

Late last yeGerman-regulatedated DeFi platform Swarm launched an Ethereum blockchain-based trading platform for tokenized real assets. And in March this year, BlackRock, the world’s largest investment company, announced the launch of a tokenized investment fund.

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