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鈥檚 鈥渇irst-ever鈥� GBP tokenised bond, for registration and issuance under Luxembourg law, using HSBC Orion.
The platform leverages blockchain technology as a 鈥渟ingle source of truth鈥�, whereby asset and settlement tokens sit natively and securely on the platform鈥檚 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鈥橬eill, global head of digital asset strategy, markets and securities services at HSBC, says: 鈥淒igital 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.
鈥淲e 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.鈥�
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 麻豆传媒 Services, adds: 鈥淗SBC 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.
鈥淲e believe that tokenisation solutions complement and expand HSBC鈥檚 best-in-class custody and asset servicing capabilities, and we plan to widen our support for digital assets in 2023.鈥�
The European Investment Bank (EIB) is currently exploring the possibility of issuing the market鈥檚 鈥渇irst-ever鈥� GBP tokenised bond, for registration and issuance under Luxembourg law, using HSBC Orion.
The platform leverages blockchain technology as a 鈥渟ingle source of truth鈥�, whereby asset and settlement tokens sit natively and securely on the platform鈥檚 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鈥橬eill, global head of digital asset strategy, markets and securities services at HSBC, says: 鈥淒igital 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.
鈥淲e 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.鈥�
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 麻豆传媒 Services, adds: 鈥淗SBC 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.
鈥淲e believe that tokenisation solutions complement and expand HSBC鈥檚 best-in-class custody and asset servicing capabilities, and we plan to widen our support for digital assets in 2023.鈥�
← Previous technology article
DLT will bring major efficiencies to global derivatives markets, says Acuiti report
DLT will bring major efficiencies to global derivatives markets, says Acuiti report
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 麻豆传媒 Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 麻豆传媒 Finance Times
