HSBC Launches Tokenized Gold Products: Ripple a Partnership?

• HSBC is working to tokenize RWAs on the blockchain in order to meet the increasing demand of institutional clients.
• Ripple Labs’ XRPL is also similar to the DLT used by Bank of America. 

HSBC Holdings Limited is an international corporation. financial HSBC, a service provider that has around $10 trillion of assets in custody (AUC), announced the official launch of its HSBC gold token. This token will facilitate the blockchain-based tokenization for gold. The HSBC gold token will be minted by the bank on its Orion digital asset platform. It will be made available via HSBC Online and the HSBC HK mobile app.

“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 authorized by the Securities and Futures Commission,” Maggie Ng is the head of personal and wealth banking at HSBC Hong Kong.

In November of last year, HSBC announced it was working with Metaco to use its Institutional custody grade Harmonize. Crypto News Flash reported previously pointed outRipple is reshaping finance’s future through the tokenization of Metaco. Metaco was acquired by Ripple for $250 Million earlier this year.

#HSBC to launch 🚀 Tokenized Gold tomorrow.

In November 2023 #HSBC announced a new DigitalAssets Custody service for 💥 INSTITUTIONAL CLIENTS 💥 in partnership with #MetacoThe company is owned by @Ripple.#HSBC You can also mention the $XRP Ledger for real time settlements pic.twitter.com/oBxnfu1ipt

— EDO FARINA 🅧 XRP (@edward_farina) March 26, 2024

RWA’s Inevitable Ascendance 

Tokenization of RWA has greatly improved cryptocurrency and blockchain technology. Crypto News Flash: In accordance with the article disclosedHSBC is trying to stay market relevant by democratizing stock markets through the blockchain tokenization. 

HSBC Bank has explored the use of Distributed Ledger Technology (DLT) since as early as 2019. The bank reported that they had completed more than three million FX trades worth over $250 billion using DLT.

BlackRock has been a leader in attracting institutional investors to the blockchain network, as it recently began its bid for tokenizing real-world asset through Ethereum.

Market Picture

Bitcoin is slowly consuming its global market, and the tokenization of gold becomes necessary. The tokenized market capitalization of gold was $1.07 billion at the time of publication, with an average daily volume of $26 millions. Data provided by Coingecko shows that Tether Gold is (XAUT) followed by PAX Gold.

As earlier reported Crypto News Flash reported that Nilam Resources, a veteran South American gold mining company, had diversified their portfolio by buying $1.7 Billion worth of Bitcoins. 

It was a clear indication that Bitcoin is a popular way to protect against fiat inflation and wars. Bitcoin’s price, which has outpaced Gold ever since it was launched, is likely to remain on this path for the foreseeable future, given the current bull cycle.

Ripple Price Changes and Impact

XRP, despite the SEC vs Ripple litigation and its negative effects on the cryptocurrency market, has benefited significantly from the notable XRPL development around the globe. This large-cap alternative coin, which has a fully dilute valuation of approximately $62 billion dollars, is indicating an imminent bull run.

According to recent market statistics, the XRP rate is Up to 16% In the last four weeks, Wednesday’s trading price was around $0.62.

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