HSBC Launches Metaverse Fund for Asia Clients

The Metaverse Discretionary Strategy portfolio aims to capture growth opportunities arising globally from  the development of the metaverse ecosystem over the next decade, said the bank, adding that the “metaverse is expected to become the next iteration of the internet.”

 

According to a statement on Wednesday, HSBC (HSBC), one of the world’s largest banks, is starting a Metaverse Discretionary Strategy portfolio investing in the virtual world for private banking clients in Asia. It has launched a fund to capture investment opportunities in the so-called metaverse for clients in Hong Kong and Singapore.

 

HSBC said this strategy portfolio, actively managed by its asset management arm, will focus on investing within the metaverse ecosystem across five key areas – infrastructure, computing, virtualisation, experience and discovery, and human interface. It will be exclusive to HSBC’s high net worth and ultra-high net worth professional and accredited investor clients in Asia, managed by HSBC Asset Management.

 

“The metaverse ecosystem, while still at its early stage, is rapidly evolving,” said Lina Lim, regional head of discretionary and funds, Asia Pacific, at HSBC. “We see many exciting opportunities in this space as companies of different backgrounds and sizes are flocking into the ecosystem.”

 

The metaverse comprises a network of virtual environments accessed via different devices where users can work, socialise and play. It has come into sharper focus since Facebook changed its name to Meta last year to reflect its bet on the sector. In March, HSBC said it became the first global bank to enter The Sandbox metaverse, when it bought a plot of land to engage with sports, e-sports and gaming fans. The total addressable market for the metaverse economy could be as large as $13 trillion by 2030, Citi said in a report last week.

 

Last month, HSBC said it was buying a plot of virtual real estate in an online gaming space, becoming the second global bank to invest in a popular metaverse platform after JPMorgan set up a presence in the blockchain-based Decentraland.

 

HSBC is putting US$3.5 billion into its wealth and personal banking business, in line with its ambition to become Asia’s top wealth manager by 2025.

 

Read more: Citi Sees Metaverse Economy as Large as $13T by 2030