During the HSBC Global Investment Summit, Noel Quinn revealed that the bank introduced gold tokenization for retail clients last month. HSBC was also involved in issuing $750 million in digital bonds and testing a central bank wholesale digital currency (CBDC). Quinn said the bank will continue to explore and leverage the benefits of tokenization.
“Tokenization is an effective trading mechanism that ensures the liquidity of an asset. This is more cost-effective than outdated methods of trading. That's why we continue to invest in our tokenization product line, whether it's gold or bonds. We are quite happy with this concept,” he added.
However, according to Quinn, the benefit of tokenization depends on the underlying asset. Despite the fact that all tokens operate on the basis of valuable technology – blockchain, the bank will only deal with tokens that bring real benefits. Quinn clarified that the bank does not intend to work with cryptocurrencies.
“Theoretically, anything can be tokenized. The key criterion for us is, is there meaning and value in this token? Is it predictable? I am confident that in 2024 this type of asset will be as liquid as traditional assets,” Quinn reasoned.
Late last year, HSBC and China's Ant Group successfully completed the first intrabank transaction using tokenized deposits.
Source: Bits
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