Crptocurrency
HSBC Set to Launch a Digital Assets Custody Service

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HSBC, Europe’s banking giant, has taken a significant leap into the digital asset space by announcing its new custody service for tokenized securities. This move positions HSBC at the forefront of major financial institutions integrating blockchain technology into traditional banking services.
According to a report by CNBC, the bank is partnering with Swiss crypto custody firm Metaco, which was acquired by FinTech firm Ripple back in May, to facilitate the secure storage of digital bonds and other securities. This service, which is set to launch in 2024, is a natural extension of HSBC’s existing digital asset initiatives, including the HSBC Orion platform for digital asset issuance and its recent venture into tokenized physical gold offerings.
On 17 May 2023, Ripple announced the acquisition of Metaco, a Swiss firm specializing in digital asset custody and tokenization services. This was a strategic move by Ripple to expand its enterprise solutions, allowing clients to manage, issue, and settle tokenized assets effectively.
Read Also: British Banking Giant, HSBC, Announces Its Cooperation with Ripple!
Metaco has established itself as a trusted name in institutional digital asset custody, boasting a portfolio of high-caliber institutional clients and a history of partnerships with regulated entities to create secure, enterprise-grade solutions. Ripple’s CEO, Brad Garlinghouse, praised Metaco’s strong reputation and its potential for growth with Ripple’s support, emphasizing the commitment to continue serving banking and institutional clients.
Metaco’s flagship product, Harmonize™, offers institutions a robust custody infrastructure trusted by leading global custodians, banks, and financial institutions. Utilizing the Harmonize platform, HSBC aims to provide a seamless and secure management system for digital asset operations. Harmonize is designed to offer institutional-grade security, unifying the various aspects of digital asset management under one roof.
The CNBC report mentions that introduction of custody services for tokenized securities by HSBC follows in the footsteps of BNY Mellon, another banking giant that embraced digital asset custody in 2021. Tokenized securities represent regulated assets such as bonds and equities but in a token form on a blockchain, which is essentially a shared digital ledger. While originally the backbone for cryptocurrencies like bitcoin, blockchain’s utility in banking extends to digitizing traditional assets for payments, trading, and more, often without involving digital currencies directly.
According to HSBC’s press release, Zhu Kuang Lee, HSBC’s Chief Digital, Data, and Innovation Officer for Securities Services, indicated that there is a growing demand among asset managers and owners for the custody and administration of digital assets as the market matures. He emphasized that HSBC is responding to this need by developing a scalable and secure next-generation custody infrastructure through strategic partnerships, stressing the critical nature of innovation and collaboration in this era of change for asset servicers.
Read Also: HSBC and Ant Group Collaborate on Tokenized Deposits: A New Frontier in Banking
Adrien Treccani, CEO and Founder of Metaco, expressed enthusiasm about collaborating with HSBC in its journey to harness distributed ledger technology (DLT) for asset creation and custody. He pointed out that Metaco’s Harmonize platform is set to play a crucial role in the evolving interaction between issuers and investors, especially as capital markets and assets increasingly adopt distributed ledger representations.
John O’Neill, who leads HSBC’s Global Digital Assets Strategy in Markets and Securities Services, shared his excitement about the upcoming launch of HSBC’s digital asset custody service. This new offering is designed to work in synergy with HSBC Orion, the bank’s platform for issuing digital assets, and its recent initiative involving tokenized physical gold. O’Neill’s comments highlight HSBC’s dedication to fostering the growth of the digital asset markets.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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Crptocurrency
Binance Lists ChainGPT (CGPT): Unlocking a New Era for AI-Powered Blockchain Solutions

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$88K Critical for Bitcoin Momentum

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Bitcoin’s price trajectory is at a pivotal juncture, with $88,000 emerging as a key level for sustaining market momentum, according to on-chain analytics firm Glassnode. Using the UTXO Realized Price Distribution (URPD) metric, Glassnode emphasized the significance of the Short-Term Holder (STH) cost basis, noting minimal trading volume below this threshold.
The $88,000 level serves as a critical psychological and technical support, and a decisive loss could pave the way for further downside. This article explores the importance of this metric and what it could mean for Bitcoin’s future price movement.
Understanding Bitcoin’s STH Cost Basis
The Short-Term Holder (STH) cost basis represents the average price at which recently acquired Bitcoin has been purchased. This metric is essential for analyzing:
- Price Momentum: Indicates the health of recent buyer confidence.
- Support Levels: Highlights crucial price points where short-term investors are likely to defend positions.
At $88,000, the STH cost basis underscores its significance as a level where short-term traders might capitulate if breached, potentially triggering a larger sell-off.
The Role of the URPD Metric
Glassnode’s UTXO Realized Price Distribution (URPD) metric maps the distribution of Bitcoin trading volumes across different price levels. Key insights from the current analysis include:
1. Minimal Volume Below $88K
- Glassnode’s data reveals limited trading activity beneath $88,000, suggesting weak historical support in this range.
2. Vulnerability to Downside Pressure
- A breakdown below $88,000 could lead to accelerated selling, as short-term holders exit positions to minimize losses.
Why $88K Is Critical for Bitcoin
1. Psychological Benchmark
- Round numbers like $88,000 hold psychological significance for traders, influencing decision-making and market sentiment.
2. Technical Relevance
- The STH cost basis aligns closely with support and resistance levels derived from historical price action, making it a reliable marker.
3. Momentum Indicator
- Holding above $88,000 would demonstrate resilience, while a breach could signal a shift in momentum toward bearish conditions.
Potential Scenarios Based on $88K Level
1. Holding Above $88K
- Sustaining this level could reaffirm Bitcoin’s bullish momentum, encouraging accumulation by both short-term and long-term holders.
- Positive macroeconomic news or institutional support could bolster price stability.
2. Breaching $88K
- A decisive loss of $88,000 might lead to panic selling, increasing volatility and pushing Bitcoin toward lower support levels.
- Traders may target $85,000 or lower as the next critical support zone.
Market Sentiment and Influences
1. Institutional Activity
- Institutional investors closely monitor key levels like $88,000, adjusting strategies based on market strength or weakness.
2. Broader Economic Factors
- Macroeconomic elements, including interest rate policies and inflation data, continue to impact risk assets like Bitcoin.
3. Short-Term Trader Behavior
- As the primary holders at this cost basis, short-term traders play a pivotal role in determining Bitcoin’s near-term price movements.
How Traders Can Respond
1. Monitor Key Levels
- Keep a close watch on Bitcoin’s behavior around $88,000, as this level is crucial for gauging momentum.
2. Set Stop Losses and Alerts
- Traders should establish clear stop-loss levels to minimize risk in case of a breakdown.
3. Consider Accumulation Opportunities
- If Bitcoin holds above $88,000, it could present a buying opportunity for those confident in a bullish continuation.
FAQs
1. Why is $88,000 significant for Bitcoin?
The $88,000 level represents the Short-Term Holder (STH) cost basis, a critical indicator of price momentum and market confidence.
2. What happens if Bitcoin drops below $88,000?
A loss of this level could trigger selling pressure, as short-term holders exit positions, potentially leading to further downside.
3. What is the URPD metric?
The UTXO Realized Price Distribution (URPD) metric tracks Bitcoin’s trading volume at different price levels, highlighting key areas of support and resistance.
4. How does $88K influence market sentiment?
Maintaining this level reinforces confidence in the market’s bullish momentum, while losing it could shift sentiment toward bearish expectations.
5. What should traders do at this level?
Traders should monitor Bitcoin’s performance around $88,000, set stop-loss levels, and consider accumulation if the level holds.
Conclusion
The $88,000 level is more than just a price point; it’s a pivotal marker for Bitcoin’s momentum and market sentiment. Glassnode’s analysis underscores its significance as the Short-Term Holder cost basis, with the potential to dictate Bitcoin’s next move.
Whether Bitcoin sustains this critical level or breaches it will determine its trajectory in the coming weeks. For traders and investors, staying vigilant and adapting strategies to this key metric will be essential in navigating Bitcoin’s dynamic market.
To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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Mantra Partners with UAE Real Estate Giant Damac to Tokenize $1B in Assets

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