HSBC Bank announced yesterday (27th) that it has launched the tokenized gold product “HSBC Gold Token” for retail customers in Hong Kong. This is the first tokenized retail investment product approved by the Securities and Futures Commission of Hong Kong and based on distributed ledger technology.
(Background)
HSBC, as one of the world’s largest banks, stated last November that it was introducing blockchain technology to tokenize gold, allowing users to trade gold directly through tokens. Yesterday (27th), HSBC Bank officially announced the launch of the tokenized gold product “HSBC Gold Token” for retail customers in Hong Kong, which is the first tokenized retail investment product approved by the Securities and Futures Commission of Hong Kong and based on distributed ledger technology.
HSBC Gold Token is supported by HSBC Orion
HSBC stated that the gold token is built on its digital asset platform HSBC Orion, and customers can trade it through the “HSBC HK App” and online wealth management platform. In response, Yang Yuru, General Manager and Head of Wealth Management and Personal Banking for HSBC Hong Kong, said:
Sami Abouzahr, Head of Investments and Wealth Management at HSBC Hong Kong, also added:
HSBC’s daily gold trading volume exceeds HKD 30 billion
HSBC Bank has significant influence in the gold market. It is one of the world’s largest custodians of precious metals and one of the four clearing banks in the London gold market. The value of gold traded by HSBC Bank exceeds USD 30 billion every day.
It is worth mentioning that according to data from the London Bullion Market Association, there are about 698,000 gold bars stored in vaults in the Greater London area, with a total value of up to USD 525 billion. Despite the enormous amount of funds involved, the London gold market still largely relies on manual records, and all transactions are conducted over-the-counter.
Therefore, Mark Williamson, CEO of HSBC Bank, previously stated:
HSBC CEO has expressed no involvement in the world of cryptocurrencies
Interestingly, HSBC Bank CEO Noel Quinn expressed skepticism about cryptocurrencies in an interview with CNBC-TV18 in 2022. He stated that HSBC, as a bank, would absolutely not be involved in the world of cryptocurrencies, cryptocurrency trading, or cryptocurrency exchanges, and has expressed negative views on cryptocurrencies in multiple speeches.
Noel Quinn emphasized that the volatility of cryptocurrencies is too high and questioned the sustainability of their valuations:
However, it seems that the bank is willing to accept the convenience brought by blockchain technology.
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