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HSBC Launches Metaverse Fund for Asia Private Banking Clients
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HSBC Holdings plc (HSBC - Free Report) has started an exclusive fund focused on the metaverse for its private banking clients in Hong Kong and Singapore. Managed by HSBC Asset Management, the discretionary portfolio will focus on the five key segments of the virtual ecosystem — infrastructure, computing, virtualization, experience and discovery, and interface.
The metaverse is expected to represent some trillion-dollar market opportunity in the coming years. HSBC stated that the “metaverse is expected to become the next iteration of the internet” and aims to capitalize on its major growth potential.
Lina Lim, the regional head of discretionary and funds for investments and wealth solutions, Asia Pacific, HSBC, said, “The metaverse ecosystem, while still at its early stage, is rapidly evolving. We see many exciting opportunities in this space as companies of different backgrounds and sizes are flocking into the ecosystem.”
Notably, this is not the first time HSBC entered the metaverse. Last month, the bank said that it was buying a plot of digital land on the metaverse platform called The Sandbox and would use it for sports, e-sports and gaming.
Notably, the metaverse, which is created by the combination of virtual reality, augmented reality and the Internet, includes a multitude of virtual worlds, wherein users can represent themselves digitally as avatars, buy in-game items, socialize with others, and own plots of land.
In February, JPMorgan Chase (JPM - Free Report) became the first bank in the United States to enter the metaverse. The biggest U.S. bank by assets opened a virtual lounge named “Onyx lounge” in Decentraland.
Christine Moy, JPMorgan’s head of cryptocurrency and the metaverse, stated, “There is a lot of client interest to learn more about the metaverse. We put together our white paper to help clients cut through the noise and highlight what the current reality is, and what needs to be built next in technology, commercial infrastructure, privacy/identity and workforce, in order to maximize the full potential of our lives in the metaverse.”
Our Take
HSBC has been undertaking several measures to bolster its performance, focusing on building operations in Asia, including Hong Kong and China. In sync with this, the bank acquired 100% of the issued share capital of AXA Insurance in Singapore for $529 million this February and agreed to acquire L&T Investment Management Limited (LTIM) for $425 million.
HSBC intends to position itself as a top bank for high net worth and ultra-high-net-worth clients in Asia and is, thus, injecting $3.5 billion into its wealth and personal banking business.
Over the past year, shares of HSBC have rallied 13%, outperforming 6.9% growth recorded by the industry.
Until July 2020, the Office of the Comptroller of the Currency did not grant permission to banks in the United States to hold cryptocurrencies. The amendment post-July gave banks the go-ahead to begin exploring cryptocurrency operations.
A few years ago, banks were not that interested in the crypto and digital asset space. But now, after witnessing an increase in demand for the emerging market, banks and financial institutions are embracing cryptocurrencies.
In July 2021, JPM became the first major bank in the United States to allow its financial advisors to give all its wealth-management clients access to cryptocurrency funds.
In an effort to strengthen and enhance its presence in the digital asset space, Citigroup (C - Free Report) announced in November 2021 that it would hire 100 additional people in its blockchain and digital assets division.
Citigroup, which has long been planning to enter the crypto space, began offering digital asset services for its wealthy clients with the launch of the business offshoot — Digital Assets Group. The unit, part of Citigroup’s wealth management division, focuses on cryptocurrencies, non-fungible tokens, stablecoins and central bank digital currencies.
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HSBC Launches Metaverse Fund for Asia Private Banking Clients
HSBC Holdings plc (HSBC - Free Report) has started an exclusive fund focused on the metaverse for its private banking clients in Hong Kong and Singapore. Managed by HSBC Asset Management, the discretionary portfolio will focus on the five key segments of the virtual ecosystem — infrastructure, computing, virtualization, experience and discovery, and interface.
The metaverse is expected to represent some trillion-dollar market opportunity in the coming years. HSBC stated that the “metaverse is expected to become the next iteration of the internet” and aims to capitalize on its major growth potential.
Lina Lim, the regional head of discretionary and funds for investments and wealth solutions, Asia Pacific, HSBC, said, “The metaverse ecosystem, while still at its early stage, is rapidly evolving. We see many exciting opportunities in this space as companies of different backgrounds and sizes are flocking into the ecosystem.”
Notably, this is not the first time HSBC entered the metaverse. Last month, the bank said that it was buying a plot of digital land on the metaverse platform called The Sandbox and would use it for sports, e-sports and gaming.
Notably, the metaverse, which is created by the combination of virtual reality, augmented reality and the Internet, includes a multitude of virtual worlds, wherein users can represent themselves digitally as avatars, buy in-game items, socialize with others, and own plots of land.
In February, JPMorgan Chase (JPM - Free Report) became the first bank in the United States to enter the metaverse. The biggest U.S. bank by assets opened a virtual lounge named “Onyx lounge” in Decentraland.
Christine Moy, JPMorgan’s head of cryptocurrency and the metaverse, stated, “There is a lot of client interest to learn more about the metaverse. We put together our white paper to help clients cut through the noise and highlight what the current reality is, and what needs to be built next in technology, commercial infrastructure, privacy/identity and workforce, in order to maximize the full potential of our lives in the metaverse.”
Our Take
HSBC has been undertaking several measures to bolster its performance, focusing on building operations in Asia, including Hong Kong and China. In sync with this, the bank acquired 100% of the issued share capital of AXA Insurance in Singapore for $529 million this February and agreed to acquire L&T Investment Management Limited (LTIM) for $425 million.
HSBC intends to position itself as a top bank for high net worth and ultra-high-net-worth clients in Asia and is, thus, injecting $3.5 billion into its wealth and personal banking business.
Over the past year, shares of HSBC have rallied 13%, outperforming 6.9% growth recorded by the industry.
Image Source: Zacks Investment Research
Currently, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Digital Asset Space & Rising Competition
Until July 2020, the Office of the Comptroller of the Currency did not grant permission to banks in the United States to hold cryptocurrencies. The amendment post-July gave banks the go-ahead to begin exploring cryptocurrency operations.
A few years ago, banks were not that interested in the crypto and digital asset space. But now, after witnessing an increase in demand for the emerging market, banks and financial institutions are embracing cryptocurrencies.
In July 2021, JPM became the first major bank in the United States to allow its financial advisors to give all its wealth-management clients access to cryptocurrency funds.
In an effort to strengthen and enhance its presence in the digital asset space, Citigroup (C - Free Report) announced in November 2021 that it would hire 100 additional people in its blockchain and digital assets division.
Citigroup, which has long been planning to enter the crypto space, began offering digital asset services for its wealthy clients with the launch of the business offshoot — Digital Assets Group. The unit, part of Citigroup’s wealth management division, focuses on cryptocurrencies, non-fungible tokens, stablecoins and central bank digital currencies.