HSBC Issues First Blockchain Tokenized Structured Product in Hong Kong

HSBC has issued its first blockchain-based structured product in Hong Kong, marking a significant step towards faster and more efficient financial processes. The bank used tokenized U.S. dollar notes for institutional investors in a private placement transaction.

The pilot project involved HSBC working with Marketnode, an Asia-Pacific digital market infrastructure operator, to issue the structured notes directly on the blockchain. This streamlined process managed payment flows between the bank and investor, demonstrating the potential of blockchain technology in improving efficiency within institutional markets.

According to Suvir Loomba, Regional Head of Securities Services in Asia at HSBC, the issuance was part of the bank's digital assets initiatives and demonstrated how it is working with market players to develop practical solutions for institutional-grade digital finance. The structured product pilot is a key component of the bank's digital assets strategy.