HSBC unveils blockchain-based structured product in Hong Kong

HSBC issued its first blockchain-based structured notes in Hong Kong, with Marketnode managing tokenization and payments. The pilot tested blockchain's efficiency in product lifecycle processes.

HSBC has completed its first blockchain-based issuance of a digitally native structured product in Hong Kong, marking a major milestone in the adoption of tokenization within traditional finance. The bank issued US dollar-denominated structured notes through a private placement for institutional investors, with the entire transaction conducted directly on blockchain infrastructure. Marketnode, a leading digital market infrastructure provider in Asia-Pacific, acted as both the tokenization agent and digital paying agent. They managed the digital issuance and payment flows between HSBC and investors, ensuring a seamless process. This pilot aimed to test how blockchain technology can streamline the issuance, settlement, administration, and servicing of structured products, making these processes more efficient and accessible. HSBC noted that this initiative is part of its broader digital asset strategy, reflecting ongoing efforts to develop practical blockchain solutions for institutional finance. Specific details such as the size of the issuance, reference asset, tenor, and blockchain used were not disclosed.