HSBC, the international banking giant, has been actively involved in tokenizing real-world assets on blockchain technology in response to increasing demand from institutional clients. The bank has recognized the potential of distributed ledger technology, similar to Ripple Labs’ XRPL, to facilitate seamless foreign exchange transactions.
Recently, HSBC Holdings officially announced the launch of the HSBC Gold token, which will enable blockchain-based gold tokenization. The HSBC Gold Token will be created on the bank’s Orion digital assets platform and will be accessible through HSBC Online Banking and the HSBC HK Mobile App.
Maggie Ng, HSBC Hong Kong’s head of wealth and personal banking, expressed pride in being the first to introduce a retail product in Hong Kong based on distributed ledger technology, authorized by the Securities and Futures Commission.
In November of last year, HSBC bank announced its partnership with Swiss enterprise tech firm Metaco to utilize its institutional custody grade Harmonize. Ripple has also been involved in reshaping the future of finance through tokenization with the assistance of Metaco, which it acquired for $250 million.
HSBC’s move to tokenize gold comes as Bitcoin continues to gain traction in the global market. The tokenized gold market currently has a market cap of approximately $1.07 billion, with a daily trading volume of around $26 million. Tether Gold (XAUT) and PAX Gold (PAXG) are leading the market in terms of market cap.
Despite the ongoing SEC vs Ripple lawsuit, XRP has benefited from the developments and institutional adoption of XRPL. The large-cap altcoin has shown signs of an imminent bull run, with its price increasing by 16% in the past four weeks to trade around $0.62.
In conclusion, HSBC’s efforts in tokenizing real-world assets and its adoption of blockchain technology demonstrate its commitment to remain relevant in the market. The rise of tokenization has enhanced the utility of cryptocurrencies and blockchain technology, attracting institutional investors and reshaping the future of finance.