HSBC Launches Retail Tokenized Gold in Hong Kong

HSBC, one of the world's largest financial institutions, has unveiled its latest offering for retail customers in Hong Kong: tokenized gold. The move aligns with HSBC and the Hong Kong government's push to digitize real assets.
Launch of HSBC Gold Token
Officially launched on Wednesday, the HSBC Gold Token is now available for trading on the Hong Kong market, according to the South China Morning Post. This innovative product allows customers to purchase gold through HSBC's online banking and mobile app, making it the first retail product of its kind issued by the bank.
“We recognize the growing demand for digital assets and that our customers are familiar with investing in gold,” said Maggie Ng, CEO and Head of Wealth and Personal Banking at HSBC Hong Kong. “We are proud that HSBC Gold Token powered by HSBC Orion is the first retail product in Hong Kong based on distributed ledger technology (DLT) to be authorized by the Securities and Futures Commission (SFC).”
The introduction of Gold Token in Hong Kong is just the beginning. HSBC plans to bring more retail products to market using HSBC Orion, the bank's digital asset platform. The platform has previously tokenized physical gold in London for institutional investors and launched digital green bonds in Hong Kong.
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The Hong Kong government favors more digital assets from June 2023. In November, the SFC issued a circular outlining the requirements for tokenized products, highlighting their potential to reduce transaction costs and improve efficiency and transparency.
“Asset tokenization can provide convenient, affordable, and broad access to real and financial assets, including HSBC Gold Token,” said Sami Abuzar, head of investment and wealth solutions at HSBC Hong Kong.
Successful Digital Bond Offering
In February, the Hong Kong government completed a $750 million multi-currency digital bond offering on HSBC Orion, a private blockchain. Darryl Chan, deputy chief executive of the Hong Kong Monetary Authority (HKMA), emphasized that digital bonds have broadened the investor base and increased liquidity, bringing tokenized bonds closer to ubiquity.
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HSBC's blockchain platform has significantly reduced the settlement time for new assets from five days to one day, simplifying the settlement of secondary market transactions and coupon payments. During the Milken Institute Global Investors' Symposium, Bojan Obradovic, Chief Digital Officer of HSBC Hong Kong, emphasized the potential for blockchain to become a core component of future financial markets.
Investing in DLT
Obradovic also noted that HSBC intends to invest in DLT and develop digital products, including funds, bonds, tokens representing real assets, and digital money. 
“Hong Kong has a real opportunity to become the world's leading digital asset hub,” he said, emphasizing the importance of attracting real transactions with economic value to the region.
According to CoinGecko, the tokenized gold market is valued at $1.09 billion, led by Tether Gold (XAUT) and Pax Gold (PAXG). HSBC's entry into this market marks a significant step in the development of digital assets and their integration into mainstream financial services.