HSBC has completed a pilot transaction for its first digitally native structured product issued on a blockchain. The private placement consisted of US dollar-denominated notes issued in Hong Kong, with support from Asia-Pacific digital market infrastructure operator Marketnode. In this transaction, Marketnode acted as both the tokenization agent to issue the notes directly on the blockchain and the digital paying agent to handle payment flows between HSBC and the investor.
The bank noted that the pilot highlights how tokenization can increase efficiency across the issuance, settlement, and servicing phases of structured products. Suvir Loomba, HSBC’s regional head of securities services for Asia and a Marketnode board member, stated that the transaction advances the bank’s digital asset capabilities and demonstrates a scalable solution for institutional-grade digital finance. He emphasized that tokenization simplifies core processes throughout a product’s lifecycle, from creation to administration.
Patrick Boumalham, head of institutional sales for Asia at HSBC, reiterated that structured products are vital investment options for institutional and wealth clients in the region. He added that tokenization offers a more scalable framework for future product innovation while optimizing current operational workflows. Marketnode CEO Rehan Ahmed concluded that shifting structured products into a digital format helps investors manage a larger portion of their portfolios on the blockchain, framing the pilot as a key step in using blockchain to improve broader capital markets processes.
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