Close
The company owned by Ripple will work closely with one of the largest banks in the world. In this post from “Pooyan Music” you will read about the signing of the contract between Ripple Labs and Hong Kong.
A company owned by Ripple Labs has formed a strategic alliance with Hong Kong banking firm HSBC. Through this partnership, they will provide advanced custody services for a variety of digital assets, including token-based securities. The innovative service is scheduled for launch in 2024 and marks HSBC’s deeper penetration into digital finance.
Ripple Labs, with the help of the purchase of Metaco Technology, will be effective in ensuring the safe storage of digital assets. But this service is not independent. It enhances HSBC’s existing digital asset solutions, such as the HSBC Orion platform for asset issuance and the new tokenized gold system. This second case is also of special importance. Because it uses distributed ledger technology to digitally prove ownership of physical gold in HSBC’s London warehouses.
HSBC’s investment in digital custody is part of a broader trend among large financial institutions experimenting with blockchain to commercialize its applications. With developments such as JPMorgan Chase and Euroclear using blockchain to settle customer collateral and issue securities respectively, HSBC is joining forward-thinking companies aiming to revolutionize traditional finance.
Custody of digital assets, a growing niche in the financial sector, is seeing increased interest from large corporations, indicating golden opportunities for startups in this space. Ripple’s prediction that the institutional crypto custody market may reach a staggering $10 trillion by 2030 reflects the enormous potential of this partnership.
This partnership also illuminates the dynamic landscape of digital asset services. where other major players such as Citigroup are considering this alliance. State Street also recently terminated a licensing agreement with a cryptocurrency custody firm. Among these changes, the alliance between Ripple Labs and Hong Kong stands as a testament to the transformative power of collaborative innovation in finance.
