HSBC has completed its first digitally native structured product issuance, a private placement of US dollar-denominated notes created directly on a blockchain in Hong Kong. The pilot, announced on July 10, was supported by Asia-Pacific digital market infrastructure operator Marketnode, which acted as both tokenisation agent and digital paying agent, handling payment flows between the issuer and investor. By issuing notes directly on-chain rather than through conventional paper-based processes, HSBC aimed to streamline the full lifecycle—from issuance and settlement through administration and servicing.
The bank did not disclose the size, tenor, underlying reference asset, number of investors, or the blockchain used. Suvir Loomba, regional head of securities services for Asia at HSBC and a Marketnode board member, said the deal demonstrates how the bank is "working with market participants to develop practical, scalable solutions for institutional-grade digital finance," adding that tokenisation "can help make markets more efficient and accessible by streamlining key steps across product lifecycles." Patrick Boumalham, HSBC’s head of institutional sales for Asia, noted that structured products remain "an important part of investment solutions for institutional and wealth clients across Asia, where demand continues to grow." Marketnode chief executive Rehan Ahmed called the transaction "a meaningful step towards enabling investors to manage more of their portfolios on-chain."
The placement extends a multi-year collaboration. HSBC and Marketnode, together with UOB, had previously contributed a case study on digitally native structured note issuance to the Monetary Authority of Singapore’s Project Guardian in 2023, testing similar mechanics. HSBC also operates Orion, a tokenisation platform for digitally native bonds, and has issued a retail gold token in Hong Kong. The structured notes pilot aligns with the bank’s digital assets strategy and broader Hong Kong efforts—the city recently established a tokenized bond expert group after issuing over HK$6.8 billion in tokenized bonds, and HSBC obtained a stablecoin issuer license from the Hong Kong Monetary Authority in April.
Structured notes generate an estimated 20–30% of revenue at many Asian wealth management platforms, with regional annual trading volumes exceeding $400 billion, making Hong Kong the market’s most active issuance hub. Faster, cheaper issuance and servicing at that scale would matter beyond a proof of concept, though HSBC framed this transaction as a pilot and did not confirm whether it plans repeat or commercial-scale issuance.
