The success of bitcoin ETFs has underscored the need for a broader range of qualified custodians.
Crypto trades have required pre-funding which is an inefficient use of collateral.
The license enables the firm to offer custody services for digital assets.
Institutions can enter the digital asset borrowing and lending market through the Tokenet integration.
The digital asset securities custody platform will launch in the first quarter of this year.
Digital asset custody is becoming increasingly interconnected across the market.
For institutional investors, counterparty risk is the Achilles heel of crypto when trading on exchange.
This represents the fourth expansion in the region following launches in Japan, Singapore and Australia.
Custody completes the digital asset offering for HSBC’s institutional clients.
