HSBC has completed its first blockchain-based fully digital structured bond issuance, marking a significant milestone in its digital asset strategy. Unlike traditional structured bonds, every core step—from issuance and settlement to administration and servicing—was handled digitally on the blockchain.
Marketnode Plays Key Role in Fully On-Chain Issuance
Marketnode, a prominent digital market infrastructure provider in Asia Pacific, acted as both tokenization agent and digital payment representative throughout the transaction. It managed the entire payment flow between HSBC and investors within the same blockchain system. The pilot aimed to assess how blockchain technology can streamline the issuance, settlement, and servicing of structured products for the institutional market.
A structured product is a financial instrument whose returns are linked to a specific asset, index, interest rate, or preset conditions. Tokenization refers to representing ownership or rights of such instruments as digital tokens on the blockchain. Patrick Boumalham, HSBC's Head of Corporate Sales for Asia, noted that tokenization offers significant potential to enhance operational efficiency and could provide a scalable foundation for the next generation of financial instruments.
HSBC Expands Digital Asset Presence; Secures Stablecoin License
As one of Asia's leading issuers of structured products, HSBC has accelerated its exploration of blockchain use cases. The bank recently completed a pilot of its Tokenized Deposit Service on the Canton Network, representing the first simulation of tokenized deposit issuance and settlement on a public blockchain designed for regulated financial institutions. Suvir Loomba, HSBC's Head of Digital Assets, emphasized that this bond issuance is a continuation of the bank's digital asset initiatives and reflects collaboration with market participants to develop real-world blockchain solutions for institutional finance.
On the regulatory front, HSBC strengthened its foothold in Hong Kong. In April, the bank was among the first to receive a regulatory license to issue stablecoins under the Hong Kong Monetary Authority's new framework, allowing it to issue regulated stablecoins together with Standard Chartered-backed Anchorpoint Financial.
Hong Kong Forms Working Group for Tokenized Bonds
In June, following the Hong Kong Monetary Authority's HK$6.8 billion (approximately US$868 million) tokenized bond issuance, the government established a new expert working group. Representatives include HSBC, JPMorgan Securities, Standard Chartered, UBS, Ant Digital, and HashKey Group. The group focuses on developing legal standards, market practices, and technical infrastructure for tokenized bonds—part of Hong Kong's broader push to build an institutional framework for digital assets and tokenization.