HSBC and Marketnode Pilot Blockchain-Based Structured Notes in Hong Kong

TLDR

• HSBC issues its first digitally native structured notes on blockchain in Hong Kong.
• Marketnode manages tokenisation and payment flows for HSBC’s Hong Kong pilot.
• The pilot tests faster issuance, settlement, administration, and servicing.
• Hong Kong expands tokenised markets through bonds and blockchain-based pilots.
• HSBC deepens its digital asset strategy with regulated blockchain products.

HSBC has issued its first digitally native structured product through a blockchain-based private placement in Hong Kong. The transaction used US dollar-denominated notes and tested faster issuance, settlement, administration and servicing. Marketnode supported the pilot and managed the tokenisation process and related payment flows.

HSBC Issues Structured Notes Directly on Blockchain

HSBC issued the structured notes directly on blockchain infrastructure instead of relying only on traditional market systems. The bank designed the private placement for institutional market participants in Hong Kong. Consequently, the transaction tested blockchain use across several stages of the product lifecycle.

Marketnode acted as the tokenisation agent and created the digital notes on the blockchain. It also served as the digital paying agent and handled payments between HSBC and the participating client. Therefore, one platform supported both asset issuance and transaction payment processes.

The pilot examined whether tokenisation could reduce delays and simplify structured product administration. It covered issuance, settlement, payment management, and ongoing servicing within one digital framework. HSBC said the model could create a scalable base for future capital markets products.

Marketnode Supports Digital Issuance and Payments

Marketnode provided the infrastructure needed to issue and manage the blockchain-based notes. The company connected the product structure with digital payment functions during the transaction. This approach allowed HSBC to test several operational processes through one coordinated system.

The platform recorded the notes digitally and supported payment transfers throughout the private placement. As a result, the parties could process key transaction steps through blockchain infrastructure. The structure also reduced the need for separate systems across issuance and servicing operations.

Marketnode views digital structured products as part of a wider shift toward blockchain-based portfolio management. The company expects financial institutions to move more traditional assets onto digital market networks. However, banks must still meet regulatory, legal, and operational requirements during that transition.

Hong Kong Expands Tokenised Capital Markets

The pilot supports Hong Kong’s broader effort to develop regulated tokenised financial markets. Authorities have already backed several digital bond issuances and related market infrastructure projects. HSBC has also expanded its role in the city’s developing digital asset sector.

In June, the Hong Kong Monetary Authority formed an expert group focused on tokenised bonds. The group includes banks, securities firms, digital asset companies, and infrastructure providers. It examines legal rules, common market practices, and systems needed for wider tokenised bond activity.

Hong Kong’s government has issued more than HK$6.8 billion in tokenised bonds across several offerings. These transactions have tested blockchain use within regulated debt markets and public-sector financing. The latest HSBC pilot extends that work into structured products for institutional finance.

The bank has also pursued regulated stablecoin activity under Hong Kong’s digital finance framework. In April, HSBC received approval to issue stablecoins under the city’s licensing system. That approval strengthened the bank’s position across tokenised payments, digital assets, and blockchain-based capital markets.