Jack used his metro card to swipe and got a seat on a New York metro bus. He opened Google News to read tech news and discovered top news. The Headline was HSBC is organizing a custody service for digital assets that aren't crypto.
HSBC intends
to introduce a custody service for the storing of blockchain-based assets—but
not cryptocurrency—in 2024. Through this agreement with the Swiss digital asset
business Metaco, institutional clients will be able to store tokens based on
blockchain technology that represent conventional financial assets rather than
cryptocurrency or stablecoins.
Last week,
HSBC said that it has created tokens to represent actual gold stored in its
vault in London. Tokenized securities, or blockchain-based versions of
financial assets, are made possible by the bank's digital asset platform, HSBC
Orion, which it introduced last year.
A digital
ledger called blockchain keeps track of token ownership. Although it has not
been widely adopted, supporters claim it has the ability to improve the
efficiency and transparency of trading. As of now, cryptocurrencies—which still
make up a very tiny portion of the global financial system—have been its
primary use case.
According to
CoinGecko data, the total worth of cryptocurrencies is currently approximately
$1.4 trillion, down from a peak of over $3 trillion in late 2021. The size of
the market for blockchain-based assets, excluding cryptocurrencies, was not
provided by HSBC. Financial institutions such as banks have poured billions of
dollars into exploring blockchain's applications. Investors can obtain digital
records of assets purchased on private markets using HSBC's Digital Vault
technology, which was introduced in 2019.
Jack shared
the tech news on WhatsApp group after finishing the article.
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