HSBC Debuts Tokenized Gold Offering in Hong Kong

HSBC is furthering its push for gold markets using distributed ledger technology. Last week, the company launched the first tokenized gold offering by a bank using distributed ledger technology in Hong Kong. HSBC Gold Token is already available on Orion, the bank’s online digital assets app, to retail customers interested in investing in gold in a simplified way.
HSBC’s Gold Token focuses on customers with an investor profile, meaning they should have an approved investment account and residential access registered with the bank. Using distributed ledger technology simplifies the management of these investments, which must follow certain cumbersome procedures when traded in traditional markets. However, HSBC’s product will not enable trading with third parties, as customers can redeem the gold tokens only by selling them to the bank.
With this move, the company recognizes the relevance of distributed technologies as it makes them part of its push to dominate one of the largest gold price-setting markets alongside London and New York. Recognizing the allure of the gold-blockchain combination, HSBC Hong Kong’s general manager and head of wealth and personal banking Maggie Ng, stated:
We acknowledge the rising demand for digital assets and the existing familiarity of our customers with gold investment.
Tokenized gold products are nothing new, as there is already a publicly available distributed market of gold tokens with a market cap of over a billion dollars. However, HSBC’s product boasts the approval of the Securities and Futures Commission (SFC), the country’s security watchdog.
HSBC has been involved in gold tokenization initiatives before. In November, the bank announced the launch of a gold tokenization trading platform in London for institutional customers, targeting a $525 billion market in the greater London area.