The Hong Kong branch of global financial giant HSBC (NASDAQ: HSBC) has announced plans to introduce tokenized assets to a wider range of investors, targeting its wealth management clients.
After achieving initial success with blockchain technology, HSBC Hong Kong is looking to expand the forefront of its digitization drive to unite its wealth customers.
Sami Abouzahr, head of wealth solutions at HSBC Hong Kong, noted that financial institutions have experimented enough to expand blockchain-based services. Although Abouzahr did not specifically mention digital assets, industry experts are initially predicting tokenized gold offerings.
In late 2023, HSBC officially announced the tokenization of gold bullion using blockchain to create a digital twin of the gold held in its London vaults, achieving an impressive adoption rate within three months.
Rather than making a bold move, the company appears to want to take a cautious approach by pushing tokenized services for its wealth management clients. Regulatory issues are at the top of the pyramid for banks, followed by the suitability of tokenized investments for customers.
Abouzahr said investors are showing a growing appetite for new, riskier asset classes, which is helping banks make decisions to expand their horizons. Another reason for the expansion is Hong Kong’s positive stance on digital assets, highlighted by a series of state-backed Web3 initiatives and strong legislation.
Going forward, HSBC Hong Kong will provide wealthy clients with a digital platform to seamlessly manage their digital assets in accordance with existing regulations.
In addition, HSBC plans to continue to optimize digital channel services so that customers can manage their finances more conveniently through mobile phones.
As part of its 2024 development strategy, HSBC is focusing on providing enhanced personalized services for high-net-worth individual banking customers investing in the stock market.
The long history of blockchain
HSBC is moving forward to fully embrace the digitalization of traditional banking, thanks to a series of blockchain-based initiatives. The global financial giant has launched HSBC Orion, which covers Hong Kong’s latest bond issuance and European Investment Bank (EIB) 2023 issuance, for institutional clients.
“This is also the first public issuance on our tokenization platform,” HSBC said of the EIB issuance. “HSBC Orion opens opportunities for faster processing and improved operational performance across bond issuances.”
The bank is starting to dive into structured products, joining Singapore’s Project Guardian to operate as a whitelist issuer, working with Marketnode and UOB.
Watch: Tim Draper talks with Kurt Wuckert Jr. about tokenization.
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