HSBC Issues First Blockchain-Based Structured Notes in Hong Kong

• HSBC completes its first digitally native structured product issuance using blockchain technology in Hong Kong.
• Marketnode supports tokenisation and payments, improving structured product efficiency for institutions.
• The pilot highlights Hong Kong’s growing focus on blockchain-based capital markets innovation.

HSBC has completed its first blockchain-based issuance of a digitally native structured product in Hong Kong. The pilot involved US dollar-denominated notes and tested blockchain technology for faster issuance, settlement, and servicing for institutional investors.

HSBC Tests Tokenized Structured Product Issuance

HSBC issued the structured notes through a private placement, marking its first digitally native structured product using blockchain infrastructure. The transaction was supported by Marketnode, which acted as the tokenisation agent and digital paying agent.

Through the pilot, Marketnode enabled HSBC to issue the notes directly on blockchain infrastructure. Additionally, the platform managed payment flows between HSBC and the participating investor during the transaction process.

HSBC said the initiative demonstrates how tokenisation can improve efficiency across structured product operations. The technology can simplify issuance, settlement, administration, and servicing while creating a more connected digital framework.

Suvir Loomba, regional head of securities services for Asia at HSBC, said the transaction builds on the bank’s broader digital asset initiatives. He noted that collaboration with market participants can support practical blockchain solutions for institutional finance.

Furthermore, HSBC highlighted that tokenised financial products could help reduce operational complexity. The bank continues exploring digital asset applications that improve processes across capital markets while maintaining institutional standards.

Patrick Boumalham, HSBC’s head of institutional sales for Asia, said structured products remain important investment tools for institutional and wealth clients. He added that tokenisation could create a scalable foundation for future product innovation.

Hong Kong Expands Blockchain-Based Financial Markets

Marketnode CEO Rehan Ahmed said the transaction represents progress toward enabling investors to manage more portfolio assets through blockchain systems. The company supported the pilot by combining digital issuance capabilities with payment management functions.

Meanwhile, Hong Kong continues expanding its tokenised financial market infrastructure. The region has supported several blockchain-based bond initiatives as regulators and financial institutions explore digital asset applications.

The Hong Kong Monetary Authority has also increased efforts to develop tokenised bond frameworks. The authority established an expert group focused on legal structures, market practices, and infrastructure needed for broader adoption.

HSBC’s latest pilot follows growing institutional interest in blockchain-based capital markets solutions. The bank said the transaction forms part of its wider digital assets strategy and demonstrates blockchain’s potential within regulated financial markets.

As financial institutions continue testing tokenisation, blockchain-based products could become increasingly integrated into traditional investment systems. However, market participants will continue focusing on regulatory compliance, operational security, and scalability before wider adoption.