HSBC Launches Gold Token Service for Retail Investors in Hong Kong
Banking giant HSBC is now allowing retail investors in Hong Kong to buy real gold through digital tokens.
HSBC’s new gold investment is available through the bank’s online banking service and app, it said Wednesday.
It’s the first time HSBC has used its private distributed ledger for everyday investors. To power the gold token, the bank is using its digital assets platform Orion. This platform facilitates the issuance and storage of digital assets like bonds.
The introduction of the HSBC Gold Token marks the initiation of retail products driven by the Orion platform. This system generates digital tokens representing actual gold bars, enabling their trade through HSBC’s single-dealer platform.
The bank previously used Orion to launch digital bonds in Hong Kong and Luxembourg, and to tokenize physical gold in London for institutional investors.
“We are proud that HSBC Gold Token, powered by HSBC Orion, is the first retail product in Hong Kong that is based on distributed ledger technology, as authorised by the Securities and Futures Commission,” HSBC general manager Maggie Ng said in a statement.
“We acknowledge the rising demand for digital assets and the existing familiarity of our customers with gold investment,” she added.
Tokenization refers to creating digital representations of real-world assets (RWA) on a blockchain. These digital tokens function as verifiable records of ownership or value associated with the underlying asset, such as stocks, property, or even precious metals.
The conversion of RWA into digital tokens on a blockchain has emerged as a dominant trend within established financial institutions. This development follows Boston Consulting Group’s prediction in late 2022, projecting that the value of tokenized
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