Over recent years, HSBC has embarked on an endeavor to tokenize real-world assets (RWA) utilizing blockchain technology, driven by heightened demand from institutional clients. This banking behemoth has extolled the virtues of distributed ledger technology (DLT), akin to Ripple Labs-backed XRPL, in streamlining FX transactions seamlessly.
HSBC Holdings, a global financial services juggernaut managing approximately $10 trillion in assets under custody (AUC), has formally introduced the HSBC Gold token to facilitate the tokenization of gold via blockchain. The launch of the HSBC Gold Token marks a significant milestone, being minted on the bank’s Orion digital assets platform and accessible through HSBC Online Banking and the HSBC HK Mobile App.
Maggie Ng, Head of Wealth and Personal Banking at HSBC Hong Kong, expressed pride in the debut of the HSBC Gold Token, powered by HSBC Orion, as the inaugural retail product in Hong Kong based on distributed ledger technology, duly authorized by the Securities and Futures Commission.
In a strategic move announced last November, HSBC collaborated with Swiss enterprise tech firm Metaco to leverage its institutional custody-grade Harmonize. As highlighted by Crypto News Flash previously, Ripple has been instrumental in reshaping the finance landscape through tokenization, facilitated by Metaco, which it acquired for $250 million the previous year.
The Unstoppable Ascendance of RWA
The discernible ascent of real-world assets (RWA) tokenization has markedly enhanced cryptocurrency utility and blockchain technology overall. As per insights from Crypto News Flash, HSBC’s efforts to democratize the stock market via blockchain tokenization underscore its commitment to staying pertinent in the evolving market landscape.
Notably, HSBC began delving into distributed ledger technology (DLT) as early as 2019, settling over 3 million FX transactions totaling more than $250 billion via DLT.
The imperative to tap into global markets via blockchain technology has attracted a slew of institutional investors, led by BlackRock, which recently initiated its foray into real-world assets tokenization on the Ethereum network.
Market Outlook
The impetus to tokenize gold arises as Bitcoin steadily encroaches upon its global market share. Presently, the tokenized gold market boasts a market cap of approximately $1.07 billion, with a daily trading volume of roughly $26 million. Tether Gold (XAUT) and PAX Gold (PAXG) reign supreme by market cap, according to data furnished by Coingecko.
As previously delineated by Crypto News Flash, veteran gold miner Nilam Resources, hailing from South America, diversified its holdings by acquiring $1.7 billion worth of Bitcoins. This move underscores the demand for Bitcoin as a hedge against impending conflicts and unchecked fiat inflation. Moreover, Bitcoin has significantly outperformed Gold since its inception, a trend poised to persist amid the confirmed bull cycle in the ensuing quarters.
Impact on Ripple (XRP) Price Dynamics
Despite the adverse ramifications of the ongoing SEC vs. Ripple lawsuit, XRP has reaped substantial benefits from notable XRPL advancements and institutional adoption worldwide. The large-cap altcoin, boasting a fully diluted valuation of approximately $62 billion, has hinted at an imminent bull run.
According to the latest market data, XRP’s price has surged by 16% over the past four weeks, hovering around $0.62 on Wednesday.
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