In a unique amalgamation of traditional and new-age mechanisms, HSBC, one of the leading global banks, has pioneered the launch of gold tokens to woo investors and traders.
Setting a novel precedent, HSBC has become the first ever bank to launch gold-inspired tokens on a blockchain. This development has been heralded as the new age of contemporary investment, bringing real-world asset utility to the Web3 vertical.
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HSBC Launches Gold Tokens on Blockchain
In an industry-first precedent, HSBC has become one of the first-ever leading banks to explore gold tokens on a blockchain. The bank has notably launched a blockchain-based gold investment mechanism, bridging the barrier between traditional and new-age investment options.
Per the press release, HSBC will mint the token on its Orion digital asset platform, allowing users to explore and experiment with it. The facility to access the new tokens will be available via the HSBC HK Mobile Banking App.
“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,” as shared by HSBC Hong Kong head of wealth and personal banking Maggie Ng.
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In November 2023, the bank expressed its intentions to offer tokenized gold as its next set of product offerings.
Furthermore, this move has been referred to as a novel paradigm shift. HSBC taking the lead in embedding gold into distributed ledger technology sets a new exemplary standard for verticals to follow and imitate. The development seals the intent of blockchains in the first place by bringing real-world asset utility to the space.
The Allure Continues To Shine Bright
With leading banks exploring the gold space, it seems that the glitter of gold is keeping its shimmer intact. At press time, the price of gold spot is stable at $2,179, up 0.75 in green. Similarly, gold ETFs have also been performing exceptionally well in the market as of late.
Additionally, a new report by Cafe Mutual outlines the current investor sentiment toward gold proceedings. Per the report, nearly 50% of individual investors account for the total gold ETF at AUM, a striking number that continues to increase yearly.
Also Read: Gold Price Eyeing $3,000 After Hitting 3rd All-Time High in 2024
“With the gradual awareness of gold ETFs, investors have started including them in their portfolios. Gold ETFs give investors ease to invest with a lesser amount and provide more safety and security compared to physical gold.” As shared by Ashwin Patni, Head of Alternates, Product & Strategy, Axis MF,
