HSBC, the global banking giant, has been actively involved in tokenizing real-world assets (RWA) on blockchain technology in response to increased demand from institutional clients. The company has recognized the potential of distributed ledger technology (DLT), similar to Ripple Labs’ XRPL, to facilitate smooth foreign exchange transactions.
HSBC Holdings, with approximately $10 trillion in assets under custody (AUC), has officially announced the launch of the HSBC Gold token to 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 the fact that the HSBC Gold Token, powered by HSBC Orion, is the first retail product in Hong Kong to be based on distributed ledger technology, authorized by the Securities and Futures Commission.
In November of the previous year, HSBC bank revealed its collaboration with Swiss enterprise tech firm Metaco to utilize its institutional custody grade Harmonize. Ripple, known for reshaping the future of finance through tokenization, had also acquired Metaco for $250 million in the same year.
HSBC’s announcement of tokenized gold comes at a time when Bitcoin is gaining prominence in the global market. The tokenized gold market cap is currently around $1.07 billion, with a daily trading volume of approximately $26 million. Tether Gold (XAUT) and PAX Gold (PAXG) are the leading tokens by market cap.
Despite the ongoing SEC vs Ripple lawsuit, XRP has experienced significant growth due to various XRPL developments and increased institutional adoption worldwide. The altcoin’s price has risen by 16% in the past four weeks, reaching around $0.62 on Wednesday.