HSBC releases tokenisation platform for digital bonds
04 November 2022 UK
Image: Siarhei/stock.adobe.com
HSBC will launch its new proprietary tokenisation platform HSBC Orion, allowing financial institutions and corporates to issue digital bonds based on distributed ledger technology (DLT).
The European Investment Bank (EIB) is currently exploring the possibility of issuing the market’s “first-ever” GBP tokenised bond, for registration and issuance under Luxembourg law, using HSBC Orion.
The platform leverages blockchain technology as a “single source of truth”, whereby asset and settlement tokens sit natively and securely on the platform’s ledger.
Transactions on HSBC Orion occur by exchanging these tokens, achieving digital delivery versus payment.
The London-based bank intends to expand the use of HSBC Orion to other locations and asset classes in due course.
Commenting on the launch, John O’Neill, global head of digital asset strategy, markets and securities services at HSBC, says: “Digital assets are a fast-growing part of financial markets. Our clients are demanding solutions that can deliver the benefits of tokenisation within a trusted and secure environment.
“We are excited to be meeting this growing need by launching HSBC Orion, our strategic platform for tokenised assets. We plan to use HSBC Orion to facilitate further digital bond issuance and expand its usage to other products in 2023.”
According to managing director and head of DCM Syndicate, EMEA Asif Sherani, tokenisation opens up opportunities for fixed-income issuance, including faster processing and improved operational performance.
Zhu Kuang Lee, chief digital, data and innovation officer at HSBC Securities Services, adds: “HSBC is pleased to be providing a secure and trusted backbone that registers and offers custody for tokenised bonds, supporting our customers in tokenised asset markets.
“We believe that tokenisation solutions complement and expand HSBC’s best-in-class custody and asset servicing capabilities, and we plan to widen our support for digital assets in 2023.”
The European Investment Bank (EIB) is currently exploring the possibility of issuing the market’s “first-ever” GBP tokenised bond, for registration and issuance under Luxembourg law, using HSBC Orion.
The platform leverages blockchain technology as a “single source of truth”, whereby asset and settlement tokens sit natively and securely on the platform’s ledger.
Transactions on HSBC Orion occur by exchanging these tokens, achieving digital delivery versus payment.
The London-based bank intends to expand the use of HSBC Orion to other locations and asset classes in due course.
Commenting on the launch, John O’Neill, global head of digital asset strategy, markets and securities services at HSBC, says: “Digital assets are a fast-growing part of financial markets. Our clients are demanding solutions that can deliver the benefits of tokenisation within a trusted and secure environment.
“We are excited to be meeting this growing need by launching HSBC Orion, our strategic platform for tokenised assets. We plan to use HSBC Orion to facilitate further digital bond issuance and expand its usage to other products in 2023.”
According to managing director and head of DCM Syndicate, EMEA Asif Sherani, tokenisation opens up opportunities for fixed-income issuance, including faster processing and improved operational performance.
Zhu Kuang Lee, chief digital, data and innovation officer at HSBC Securities Services, adds: “HSBC is pleased to be providing a secure and trusted backbone that registers and offers custody for tokenised bonds, supporting our customers in tokenised asset markets.
“We believe that tokenisation solutions complement and expand HSBC’s best-in-class custody and asset servicing capabilities, and we plan to widen our support for digital assets in 2023.”
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