HSBC Becomes the First Bank to Launch Blockchain-Based Retail Product

• HSBC has recently launched tokenized gold called the HSBC Gold Token.
• The bank claims to be the first to issue blockchain-based real-world assets in the retail market.
• Eric Balchunas hints at Hong Kong’s possible availability of in-kind creations and redemptions for spot Bitcoin ETFs.

The commercial banking corporation, HSBC, has reportedly become the first bank to issue blockchain-based real-world assets in the retail market, with the launch of HSBC Gold Token. As per the latest report, HSBC’s tokenized gold will be available to everyday investors in Hong Kong from today.

Senior ETF analyst Eric Balchunas shared on X post, providing insights on the possibility of Hong Kong allowing “in-kind creations and redemptions for spot bitcoin ETFs in 2Q” unlike the US Bitcoin ETFs, which are available only in cash creations.

Hong Kong’s HSBC launched tokenized gold amidst the government’s preference to introduce more digital assets for public use. Literally, tokenized gold refers to physical gold with its ownership rights stored digitally on a blockchain.

According to the press release, the HSBC Gold Token is minted on the bank’s Orion digital assets platform. Today, tokenized gold will reportedly be available to the public via HSBC Online Banking and HSBC HK Mobile App. 

HSBC executive Maggie Ng stated, “We acknowledge the rising demand for digital assets and the existing familiarity of our customers with gold investment.” Claiming that HSBC is the first to launch a blockchain-based retail product in Hong Kong, Ng cited,

“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 (SFC).”

As per the SFC, tokenized products have the potential to reduce operational costs, promoting efficiency and transparency. Sami Abouzahr, Hong Kong Head of Investments and Wealth Solutions at HSBC, commented that asset tokenization could enable “convenient, affordable, and broad access to real-world and financial assets.”