The CEO of the British bank HSBC, Noel Quinn, expressed his support for the tokenization of assets while remaining cautious about cryptocurrencies. During the HSBC Global Investment Summit, Quinn announced that the bank recently launched gold tokenization for retail clients and participated in a digital bond issuance and a wholesale central bank digital currency (CBDC) trial worth $750 million. He emphasized that HSBC will continue to explore and take advantage of the benefits of tokenization.
Quinn sees tokenization as an efficient trading mechanism that ensures asset liquidity and is more cost-effective than outdated methods. Therefore, the bank is investing in its tokenization product line, focusing on assets such as gold and bonds. However, Quinn clarified that HSBC will only work with tokens that offer real benefits, as the underlying asset is crucial. On the other hand, the bank has no intention to engage with cryptocurrencies.
Quinn believes that theoretically, any asset can be tokenized, but its meaningfulness and value are key criteria for HSBC. Additionally, predictability of the tokens is also essential. He expressed confidence that by 2024, tokenized assets will be as liquid as traditional assets. In late 2020, HSBC and Ant Group, a Chinese company, successfully completed the first intra-bank transaction using tokenized deposits.
Sophie Berger covers EU regulation and policy from Brussels. With a Master's in European Affairs from Sciences Po and five years at Politico Europe, she tracks MiCA implementation, ECB digital-euro work and ESMA enforcement. Sophie is fluent in French, German and English, and has interviewed three EU commissioners on record. Her policy briefs are read across the BTCNews newsroom every morning.
