British multinational investment bank and financial services holding company, HSBC Holdings has announced the launch of a fund to seize investment opportunities in the metaverse for its high net worth clients in Singapore and Hong Kong.
HSBC Holdings offers new opportunities for high net worth clients
HSBC Holdings’ move comes as financial services companies are rapidly entering Silicon Valley’s new virtual reality, the metaverse.
According to reportsHSBC said its asset management company will actively manage the Metaverse Discretionary Strategy portfolio, which focuses on investing within the Metaverse in five key areas – infrastructure, computing, virtualization, experience, discovery and interface.
The Discretionary Portfolio is created for high net worth and ultra high net worth professional investors based in Hong Kong and Singapore, as well as accredited investor clients.
Lina Lim, regional head of discretionary funds and investment and wealth management solutions, Asia-Pacific at HSBC, believes the metaverse ecosystem is still in its infancy and has an evolving future. She added:
We see many exciting opportunities in this space as companies from different backgrounds and sizes flock to the ecosystem.
Growing Metaverse Adoption
According to a report by Citi, the total addressable market of the metaverse economy could reach $13 trillion by 2030. It has seen stronger pull from around the world since Facebook changed its name to Meta in 2021 to reflect its vision in the area. Metaverse tokens like Decentraland (MANA) and The Sandbox (SAND) have seen a massive increase in their values over the past year.
In March, the banking giant became the second global bank to enter the Metaverse industry by acquiring virtual real estate from The Sandbox Metaverse to “embrace the culture of Web3 by connecting with users through entertainment, games, and user-generated content”.
It is also important to note that prior to this, JPMorgan also dabbled in the industry by moving into Decentraland.