HSBC Collaborates with Ripple's Metaco for Digital Asset Custody Solutions

The HSBC financial group is embarking on a venture to provide custody solutions for digital holdings like tokenized securities alongside Ripple Labs-owned Metaco , set to launch in 2024.

This update follows the recent launch of HSBC 's recent launch of a platform for digital asset HSBC Orion and its groundbreaking system for issuing tokenized gold.

"With asset managers and owners increasingly leaning towards digital asset custody and fund administration, we’re noticing a growing demand as this sector continues to advance,\" commented Zhu Kuang Lee, HSBC's chief officer of digital, data, and innovation in securities services.

Custody solutions have emerged as a central focus in the financial sector, making headlines nationwide. blockchain industry As HSBC steps into this arena alongside other major institutions, the competitive landscape is evolving swiftly, creating fresh avenues for new startups while posing challenges to smaller companies aiming to collaborate with leading financial corporations.

Despite the thrilling discourse surrounding blockchain advancements over the past decade, the industry hasn't yet reaped substantial rewards from these initiatives. However, with HSBC's recent commitments and similar moves from other giants, there's a feeling that we are on the brink of a new chapter where practical use cases and significant advantages could start to emerge. banking sector Citigroup Evaluating Its Partnership with Metaco

Citigroup is reportedly reassessing its collaboration with Metaco in the wake of Ripple's acquisition of the firm in May, raising eyebrows over possible conflicts of interest.

Considering HSBC’s move, Citigroup Insiders in the industry suggest that Citigroup's move highlights the complexities financial institutions face when dealing with partnerships in the fast-paced realm of digital assets and blockchain technology.

Citi is a valuable client for a multitude of strategic reasons. It currently holds the impressive title of the fourth-largest custodian bank in the world, just behind BNY Mellon, State Street, and JP Morgan. Importantly, Citi has been at the forefront with its Regulated Liability Network – a promising initiative that aims to bridge the gap between central bank digital currencies, bank deposit tokens, and various tokenized digital assets.

A significant proof of concept involving collaboration with the New York Federal Reserve and other banks has just wrapped up, marking an important advancement for this initiative.

The alliance with Metaco, coupled with the ripple effects it may have on partnerships throughout the sector, emphasizes the ever-changing landscape of blockchain and digital asset functionalities.

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