HSBC, the banking giant, has recently introduced a tokenized gold product for its retail customers in Hong Kong, aligning with the government’s efforts to digitize real-world assets. The HSBC Gold Token, which can now be accessed through HSBC’s online banking and mobile app, is the bank’s first offering of a tokenized gold product. Tokenized gold represents physical gold on a blockchain, and its value has already surpassed $1 billion in 2023, according to data from CoinGecko, a crypto data aggregator.

Notably, HSBC’s gold token is the first retail product in Hong Kong that is based on distributed ledger technology and authorized by the Securities and Futures Commission (SFC). This development comes after HSBC previously revealed its creation of tokens representing gold holdings stored in a London vault.

Hong Kong is actively promoting the adoption of more digital assets for public use, with the SFC highlighting the benefits of tokenized products, such as reduced operational costs and increased efficiency and transparency. Sami Abouzahr, HSBC’s Hong Kong head of investments and wealth solutions, emphasized the advantages of asset tokenization, stating that it enables convenient, affordable, and broad access to real-world and financial assets, in this case, the HSBC Gold Token.

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