The private placement was issued directly on blockchain with Marketnode acting as tokenization and digital paying agent, as HSBC expands its digital-asset push amid Hong Kong’s broader tokenization drive.
HSBC has completed what it described as its first blockchain-based issuance of a digitally native structured product in Hong Kong, privately placing U.S. dollar-denominated notes for institutional investors. The notes were issued directly on blockchain rather than digitized after issuance, with Marketnode supporting the deal as tokenization agent and digital paying agent by issuing the notes onchain and managing payment flows between HSBC and the investor. HSBC said the pilot tested how tokenization could improve the efficiency of issuance, settlement, administration and servicing for structured products in institutional markets. The transaction adds to Hong Kong’s broader effort to develop tokenized capital markets infrastructure, following the Hong Kong Monetary Authority’s creation in June of a tokenized bond expert group after the government issued more than HK$6.8 billion ($868 million) in tokenized bonds across several offerings. HSBC has also been expanding its digital-asset footprint in the city, including receiving a Hong Kong Monetary Authority stablecoin issuer license in April under the new regulatory framework.