HSBC captures opportunities in the metaverse for clients with new portfolio

With the metaverse gaining traction, HSBC has launched a service to help clients monetise the growth opportunities, offering high-net-worth clients a portfolio focused on investing in companies within the metaverse ecosystem.

According to HSBC Global Private Banking, it has launched a discretionary managed portfolio for metaverse opportunities exclusively for its private banking clients in Hong Kong and Singapore. The portfolio is actively managed and focuses on investing in companies within the metaverse ecosystem with five key segments, including infrastructure, computing, virtualisation, experience and discovery, and human interface.

The bank said its bespoke metaverse discretionary strategy aims to capture the growth opportunities globally over the next decade arising from the development of the metaverse ecosystem, as it is expected to become the future of the internet. The strategy will leverage the expertise and resources of HSBC Asset Management, which boasts knowledge in digital and technology sectors and is capable of identifying companies that are expected to outperform the broader global market in the long run.

"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. A robust stock selection and investment process are critical to identifying future solution providers," said Lina Lim, regional head of discretionary and funds, investments and wealth solutions, Asia Pacific, HSBC.

HSBC is one of the banks that enter the metaverse at its early stage. It recently partnered with Animoca Brands' subsidiary The Sandbox. The partnership allows the bank to create innovative brand experiences for new and existing customers. HSBC has acquired a 3x3 LAND site in The Sandbox metaverse to engage and connect with sports, esports and gaming enthusiasts.

According to HSBC's CMO for the Asia Pacific, Suresh Balaji, the metaverse is how consumers will experience Web3, the next generation of the Internet. This is achieved by immersive technologies such as AR, VR and extended reality. "At HSBC, we see great potential to create new experiences through emerging platforms, opening up a world of opportunity for our current and future customers and for the communities we serve," explained Balaji.

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