HSBC, a major player in the banking industry, has recently introduced a tokenized gold product for its retail customers in Hong Kong. This move aligns with the bank’s and the government’s efforts to digitize real-world assets.

According to a report by SCMP, the HSBC Gold Token, now accessible through HSBC’s online banking and mobile app, is the first tokenized gold product offered by the bank. Tokenized gold refers to the digital representation of physical gold on a blockchain. CoinGecko data reveals that the value of tokenized gold assets exceeded $1 billion in 2023.

Additionally, HSBC’s gold token is notable for being the first retail product in Hong Kong to utilize distributed ledger technology, authorized by the Securities and Futures Commission (SFC).

This latest financial product comes months after HSBC announced the creation of tokens representing gold holdings stored in a London vault. The unveiling of the HSBC Gold Token aligns with Hong Kong’s objective of introducing more digital assets for public use. The SFC believes that tokenized products can enhance operational efficiency, reduce costs, and promote transparency.

Sami Abouzahr, HSBC’s Hong Kong head of investments and wealth solutions, commented on the significance of asset tokenization, stating, “Asset tokenization can enable convenient, affordable, and widespread access to real-world and financial assets, as exemplified by the HSBC Gold Token.”

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