Banking giant launches gold-backed cryptocurrency for private individuals

Hong Kong-based banking giant HSBC is launching a gold-backed token for private individuals, claiming to be the first bank with a physically backed cryptocurrency. This concerns the HSDC Gold Token that was launched on the bank’s Orion digital assets platform.

More and more traditional parties seem to be aligning themselves with the Real World Assets collapse trend.

The next big hype?

Every bull run of the crypto market is accompanied by a new narrative. This run has of course started thanks to the launch of the Spot Bitcoin ETFs in the United States, but in the background something is starting to bubble around Real World Assets.

Basically, these are tokens that are backed by real-world assets. For example, tokens that represent gold, but it could also be art or real estate.

While the hype in 2021 was for non-fungible tokens (NFTs) and of course decentralized financial applications (DeFi), it is increasingly looking like this bull run is all about Real World Assets.

“We are proud that the HSBC Gold Token, powered by HSBC Orion, is the first retail product in Hong Kong based on blockchain technology and has been approved by the regulator,” said Maggie Ng, the head of wealth and banking at the Bank.

HSBC goes after BlackRock

With this new token, HSBC is following the big BlackRock, which previously launched a $100 million fund on Ethereum. BlackRock’s fund is focused on US government bonds, which allow investors to earn a return on their US dollars through the Ethereum blockchain.

BlackRock’s tokens represent US government bonds, which of course pay interest.

In any case, it is clear that more and more major parties from the traditional financial world see a future in technology. Of course, we still have to see what happens in the long term, but it is certainly a promising development.

What do you think? Are Real World Assets the next big hype in the blockchain world or is it all a bit exaggerated?

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