HSBC is increasing the variety of digital assets it offers, focusing on assets with real-world value to avoid the unpredictability of cryptocurrencies. The bank introduced a digital gold token using its new Orion platform, making it easier and cheaper for the general public to invest in physical assets.

CEO Noel Quinn of HSBC is determined to grow the bank's range of digital assets, aligning them with assets of tangible value and distancing them from the volatility of cryptocurrencies. Tokenization involves converting ownership of a physical asset into a digital token for trade on a blockchain platform, essentially transforming rights into digital tokens within a decentralized ledger system.

The bank recently launched a retail gold token using its Orion platform, marking a significant step in digitizing physical assets for public investment. Quinn highlighted the efficiency and cost benefits of this new initiative compared to traditional trading practices. He emphasized the bank's focus on exploring new applications for the technology, particularly assets with intrinsic value.

Hong Kong has emerged as a leader in adopting tokenization, with the Securities and Futures Commission granting tokens the status of regulated securities and funds. By issuing blockchain-based tokens representing ownership in various investment vehicles, the city is advancing in digital asset issuance. HSBC has seen significant efficiency gains from this initiative, reducing settlement times and simplifying market transactions.