HSBC gold tokenization conundrum

HSBC, the largest bank in Europe and the seventh biggest globally, has ventured into gold tokenization using a blockchain-powered platform. Each token on HSBC’s platform will now represent ownership of physical gold stored in the UK in a London vault. Trading takes place on the HSBC Evolve platform, catering to institutional investors and this move aligns with HSBC's broader blockchain initiatives and the upcoming HSBC Orion tokenization platform for digital debt instruments. The gold tokenization launch addresses the increasing interest in digital assets amid inflation concerns. Gold is the second-most tokenized asset by market capitalization, following US Dollars. Tether Gold and PAX Gold lead this space, with approximately $490 million and $480 million market capitalizations respectively. HSBC aims to establish itself as a leader in digital asset capabilities amid the ongoing trend of digitizing a variety of assets and there is a growing trend for regulated institutions to tokenize…