Gold Spot / U.S. DollarUpdated HSBC's New Digital Gold Platform
HSBC has launched an innovative platform using Distributed Ledger Technology (DLT) to tokenize the physical gold of institutional clients stored in its London vault. This platform enables the trading of digital tokens, each representing 0.001 troy ounces of customer-held gold, fostering a response to the increasing demand for real-world tokenization, according to John O'Neill, HSBC's Global Head of Digital Assets Strategy.
The platform creates digital representations of "loco London" gold, facilitating seamless trading through the HSBC Evolve platform or API. It efficiently tracks both allocated and unallocated gold positions within HSBC's operational infrastructure.
In addition to the potential fractionalization of gold bars and direct retail investor participation, this platform offers customers the ability to monitor their tokenized gold transactions. The tokenization of gold aligns with the trend among investors towards "flight to quality," with gold emerging as the second most commonly digitized asset after USD.
HSBC also has plans to launch HSBC Orion, a platform enabling organizations to issue digital bonds, further bridging tangible assets like gold with the rapidly evolving tokenized realm. The tokenized gold market is primarily dominated by Tether Gold (XAUt) and PAX Gold (PAXG), with market capitalizations of approximately $490 million and $480 million, respectively.
The platform creates digital representations of "loco London" gold, facilitating seamless trading through the HSBC Evolve platform or API. It efficiently tracks both allocated and unallocated gold positions within HSBC's operational infrastructure.
In addition to the potential fractionalization of gold bars and direct retail investor participation, this platform offers customers the ability to monitor their tokenized gold transactions. The tokenization of gold aligns with the trend among investors towards "flight to quality," with gold emerging as the second most commonly digitized asset after USD.
HSBC also has plans to launch HSBC Orion, a platform enabling organizations to issue digital bonds, further bridging tangible assets like gold with the rapidly evolving tokenized realm. The tokenized gold market is primarily dominated by Tether Gold (XAUt) and PAX Gold (PAXG), with market capitalizations of approximately $490 million and $480 million, respectively.
Trade active
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.