The bank announced Wednesday (April 6) it had launched a fund to capture investment opportunities in the space for its rich clients in Hong Kong and Singapore.
It makes HSBC the latest financial services company to tap into Silicon Valley's new virtual reality.
The lender's portfoilo - named the Metaverse Discretionary Strategy - is due to be managed by its asset management arm.
It will focus on investing in the metaverse ecosystem across five segments - including infrastructure, computing and virtualization.
HSBC said the metaverse space is 'rapidly evolving' and they see 'many exciting opportunities' as more companies move into it.
The metaverse is made up of a network of virtual environments accessed through different devices where users can work, socialize and play.
It came into sharper focus after Facebook changed its name to Meta last year.
It has even hit the fashion runway recently, with luxury labels like Dolce & Gabbana taking part in a Metaverse Fashion Week last month.
Last month, HSBC said it was buying a plot of virtual real estate in an online gaming space.
It followed JPMorgan's move to set up a presence in the blockchain-based Decentraland.
