The global financial giant HSBC is making a strategic move into the rapidly evolving world of blockchain-based finance by launching a tokenized securities custody service for institutional clients in 2024. This development marks a pivotal moment in the convergence of traditional banking and decentralized technologies, reinforcing HSBC’s commitment to digital asset innovation and institutional-grade financial infrastructure.
As demand for secure, compliant, and scalable digital asset solutions grows, major financial institutions are redefining their roles in the new financial ecosystem. HSBC’s entry into tokenized securities custody reflects not just an isolated product launch—but a broader transformation in how banks manage and safeguard next-generation assets.
Strategic Partnership with Metaco to Power Digital Custody
HSBC has announced a key collaboration with Metaco, a leading Swiss blockchain infrastructure provider specializing in digital asset custody solutions. Through this partnership, HSBC will deliver a robust, enterprise-grade custody offering focused exclusively on tokenized securities—representing traditional financial instruments such as bonds, equities, or funds issued on blockchain networks.
👉 Discover how institutional custody is reshaping the future of finance.
This alliance combines HSBC’s global regulatory expertise, deep client relationships, and financial market leadership with Metaco’s advanced cryptographic security frameworks and multi-chain interoperability capabilities. Together, they aim to address one of the most pressing challenges in digital finance: trusted third-party custody for blockchain-native financial products.
By leveraging Metaco’s Harmonize platform, HSBC can seamlessly integrate custody operations across both public and private blockchains while maintaining strict compliance with international financial regulations—a critical factor for institutional adoption.
Building a Comprehensive Digital Asset Ecosystem with HSBC Orion
The new custody service will operate under the umbrella of HSBC Orion, the bank’s dedicated digital assets platform launched to support institutional clients in navigating the complexities of blockchain finance. HSBC Orion already offers services ranging from tokenization infrastructure to trading and settlement solutions.
Notably, the custody rollout coincides with HSBC’s recent launch of a tokenized physical gold product—allowing institutions to hold and transfer gold-backed digital tokens backed by real, audited bullion stored in secure vaults. This integration of tangible assets into programmable financial systems exemplifies the growing trend of real-world asset (RWA) tokenization.
Together, these offerings form a cohesive digital asset ecosystem where institutions can:
- Issue and manage tokenized securities
- Hold tokenized commodities like gold
- Benefit from regulated, bank-grade custody
- Access cross-border settlement efficiencies via blockchain
This holistic approach positions HSBC at the forefront of the RWA revolution—one of the most promising frontiers in modern finance.
Focus on Tokenized Securities, Not Cryptocurrencies
It’s important to clarify that HSBC’s new custody service is specifically designed for tokenized securities issued on third-party platforms, not for cryptocurrencies like Bitcoin or Ethereum, nor for stablecoins. This strategic focus underscores the bank’s intent to serve traditional financial markets through innovative technology—not to become a crypto-native custodian.
Tokenized securities offer several advantages over conventional instruments:
- Faster settlement: Reduce trade clearing times from days to minutes
- 24/7 market access: Enable continuous trading across time zones
- Programmable compliance: Automate regulatory checks via smart contracts
- Fractional ownership: Allow smaller investors to access high-value assets
By supporting these digitally native versions of familiar financial products, HSBC bridges the gap between legacy systems and future-ready infrastructure.
Banking Sector Embraces Real-World Asset Tokenization
HSBC is not alone in this journey. A growing number of global banks—including JPMorgan, BNP Paribas, and Standard Chartered—are actively exploring or deploying tokenization solutions for real-world assets. These initiatives span private equity, real estate, bonds, and even carbon credits.
According to industry estimates, the tokenized asset market could reach $16 trillion by 2030, driven largely by institutional demand for efficiency, transparency, and liquidity enhancement. As more assets move onto blockchains, secure custody becomes increasingly critical—making HSBC’s timing particularly strategic.
Furthermore, regulatory developments in jurisdictions like Hong Kong and Singapore are paving the way for broader institutional and even retail participation in tokenized securities markets. While current offerings are limited to qualified investors, future expansion could open these opportunities to a wider audience.
👉 Explore how tokenization is transforming traditional finance.
A History of Innovation: HSBC’s Blockchain Journey
While the 2024 custody launch is a major milestone, it builds on years of experimentation and collaboration. Prior to partnering with Metaco, HSBC worked with Fireblocks—a leading digital asset infrastructure provider—to test and refine secure custody protocols. These efforts have helped shape the bank’s understanding of cryptographic key management, multi-party computation (MPC), and threat mitigation in decentralized environments.
This phased, cautious approach reflects HSBC’s risk-aware culture while demonstrating its long-term vision: to be a trusted gateway between conventional finance and the blockchain economy.
Core Keywords Integration
Throughout this evolution, several core themes emerge as central to HSBC’s strategy:
- Tokenized securities
- Digital asset custody
- Blockchain finance
- Real-world assets (RWA)
- Institutional clients
- HSBC Orion
- Metaco partnership
- Financial innovation
These keywords naturally align with high-intent search queries from professionals seeking insights into regulated digital finance solutions.
Frequently Asked Questions (FAQ)
Q: What are tokenized securities?
A: Tokenized securities are traditional financial instruments—such as stocks, bonds, or funds—represented as digital tokens on a blockchain. They retain the legal rights of conventional securities but offer enhanced efficiency through faster settlement and programmable features.
Q: Is HSBC offering cryptocurrency custody?
A: No. The new service focuses exclusively on tokenized securities issued by third parties. It does not include custody for cryptocurrencies like Bitcoin or stablecoins.
Q: Who can use HSBC’s tokenized securities custody service?
A: The service is designed for institutional clients, including asset managers, hedge funds, and corporate treasury departments. Retail investors are not currently eligible.
Q: How does RWA tokenization benefit investors?
A: Real-world asset tokenization increases liquidity, reduces transaction costs, enables fractional ownership, and improves transparency—all while being backed by tangible underlying assets.
Q: What role does Metaco play in this partnership?
A: Metaco provides the underlying digital asset custody infrastructure, including secure key management and multi-chain support, enabling HSBC to offer scalable and compliant custody solutions.
Q: When will the service be available?
A: The tokenized securities custody service is scheduled to launch in 2024, integrated within the HSBC Orion platform.
👉 Learn how leading institutions are adopting blockchain for asset management.
Final Thoughts
HSBC’s move into tokenized securities custody is more than a product launch—it's a statement about the future of finance. By combining banking-grade trust with cutting-edge blockchain technology, the institution is helping shape a more efficient, transparent, and inclusive financial system.
As real-world assets continue to migrate onto decentralized networks, custodianship will remain a cornerstone of confidence and compliance. With its strategic partnerships, regulatory acumen, and technological rigor, HSBC is positioning itself as a leader in this new era of digital finance.