With the continued entrance of traditional banks into the metaverse and the broader digital currency ecosystem, HSBC seeks to create an avenue for professional investors to partake in the emerging sector.
The British financial giant in a statement announced the launch of new funds dubbed the Metaverse Discretionary Strategy portfolio, targeted at capturing investment offerings in the metaverse for its private banking clients in Hong Kong and Singapore. This fund adds to the list of banks looking to benefit from the $800 billion virtual marketplaces.
The tailor-made funds will be managed by the asset management arm of the London-based bank and will focus on maximizing early investment openings arising from the advancement of Web3 technology. Relying on its Asset Management’s expertise, the strategy will service the metaverse ecosystem through five focus areas including computing, infrastructure, experience and discovery, virtualization, and human interface.
Although the soaring metaverse platform is still in its early days, Lina Lim, an executive at HSBC believes the space is rapidly developing with the onboarding of various organizations from several sectors into the space, creating a world of limitless openings.
Despite participating in a $200 million financing round in November 2021 for ConsenSys, a leading U.S based blockchain software development firm, HSBC has been reluctant in investing in cryptocurrencies on behalf of its client or offering any crypto-related service.
It cites the volatile nature and uncertainties in the cryptosphere as reasons for this action according to CEO Noel Quinn in a statement he made in May last year after the Chinese government pulled the plug on crypto mining activities. The firm, however, sees the virtual world differently.
Last month, the bank bought a virtual land in the Sandbox metaverse making it the second major bank entering into the emerging metaverse universe after JP Morgan. JPMorgan made a grand entry into the metaverse with its “Onyx lounge” in Decentraland in February as reported by cryptomarketsbeat.
HSBC is a leading investment bank and financial service holding company that offers a wide range of financial services to its over 40 million users. The firm is also investing $3.5 billion into its wealth and personal banking business to fulfill its goal of becoming the leading wealth manager in Asia by 2025.