HSBC Hong Kong has become the first financial institution to offer tokenized RWA by launching gold tokens for retail investors in Hong Kong.
Tokenizing Real-World Assets
Retail investors in Hong Kong will now be able to buy gold tokens through the HSBC Online Banking and the HSBC HK Mobile App. Furthermore, they will also be able to access the tokens on HSBC Orion, which is a DLT-based bond tokenization platform developed to enhance the efficiency, security, and flexibility of bond issuance and trading.
The news was announced by HSBC Hong Kong’s chief digital officer Bojan Obradović during a panel at the Milken Institute Global Investor’s Symposium.
HSBC Finally Launches Gold Tokens
This is not the first step taken by the financial institution in blockchain; HSBC had previously considered offering tokenized gold as a part of its digital asset custody platform, launched in collaboration with Swiss security platform Metaco.
Tokenization allows real-world assets, like gold, to be offered as digital assets on a blockchain. User assets in the form of tokenized gold, will have enhanced security and transparency. Buyers can access their tokenized assets on private ledgers or public blockchains like Ethereum from anywhere in the world.
Benefits For Investors
Holding tokenized gold has numerous benefits for retail investors. With the transition from physical gold to digital tokens, investors can now possess a fraction of gold. Additionally, HSBC eliminates the necessity of storing gold physically, thus facilitating smooth transactions. Furthermore, utilizing blockchain technology enhances trust by ensuring the immutability and traceability of tokenized assets.
Growing Demand For Blockchain In Banking
By offering tokenized gold, HSBC has answered the growing demand for blockchain-based solutions in the fintech sector. The gold tokens were launched successfully, highlighting the bank’s intention to continue offering innovative investment assets while using distributed ledger technology. This represents a larger trend in the market towards tokenizing real-world assets (RWAs). The launch of the gold tokens has made HSBC the first bank to create a blockchain-based RWA for the retail marketplace.
General Manager and Head of Wealth and Personal Banking Hong Kong HSBC, Maggie Ng, said,
“We acknowledge the rising demand for digital assets and the existing familiarity of our customers with gold investment. We are proud that HSBC Gold Token, powered by HSBC Orion, is the first retail product in Hong Kong that is based on distributed ledger technology, as authorized by the Securities and Futures Commission (SFC).”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
