HSBC to Expand Tokenized Asset Offerings — CEO Says He’s ‘Very Comfortable’ With Tokenization
Hong Kong’s leading commercial bank, HSBC, continues to invest in its tokenization product lineup. The bank’s CEO, Noel Quinn, stated that he is “very comfortable with the concept of tokenization.” He indicated that the bank will look at ways of tokenizing assets backed by “real” assets.
HSBC’s CEO Discusses Tokenization Plans
Hong Kong’s leading commercial bank, HSBC, is poised to broaden its offerings of tokenized assets, according to CEO Noel Quinn. The executive highlighted several benefits of tokenization during a private media roundtable in Hong Kong last week, including its cost-effectiveness, efficiency gains, and overall improvement over “the old-fashioned way of trading.”
He explained: “Tokenization is a more efficient trading mechanism and provides liquidity to that asset … In theory, you can tokenize anything. The key criteria for me is, is there substance behind the token? Has it got predictability? Does it exist?”
The HSBC CEO revealed:
We continue to invest in our tokenization product lineup. I think tokenization of gold and bond issues are good. I’m very comfortable with the concept of tokenization.
His comments followed the recent launch of HSBC’s gold token, the first bank-issued retail product of its kind in Hong Kong. The initiative aligns with the Hong Kong government’s push for wider public adoption of digital assets, and HSBC is actively exploring additional applications for this technology to further expand its tokenized product offerings. The bank launched a tokenization platform for gold markets in November last year.
Quinn also indicated that the bank will look at ways of tokenizing assets that are backed by “real” assets like gold and bonds. He clarified that HSBC would be “staying away from crypto.”
John O’Neill, HSBC’s global head of digital assets strategy, said at the bank’s summit last week: “People are increasingly engaging in conversations about digital assets, and tokenized gold is one kind of asset that can be as liquid as conventional assets.”
Source : Bitcoin News by Kevin Helms / Apr 16, 2024
