HSBC (匯豐銀行) announced on July 10 that it has completed its first “digital native” structured product issuance in Hong Kong—a private placement of USD-denominated notes. These notes are issued directly on the blockchain rather than being issued first in a traditional manner and then digitized, making it a truly on-chain native issuance. Marketnode serves as the tokenization agent and the digital payments agent, handling the payment flow between the issuer and investors.
Digital native definition and Marketnode’s role as a tokenization agent
According to HSBC’s announcement, this deal is a private issuance of structured notes, with the notes issued directly on the blockchain (i.e., “digital native”) rather than being digitized after issuance in a traditional form. The core difference of this design is that the entire issuance process is conducted on-chain from the outset.
Marketnode plays two key roles in the transaction: a tokenization agent (responsible for the on-chain issuance process of the notes) and a digital payments agent (managing the payment flow between the issuer and investors).
Suviell Lomba, Regional Head of Securities Services for HSBC Asia, said the issuance “demonstrates how collaboration with market participants can deliver practical, scalable solutions for institutional-grade digital finance development,” adding that tokenization can “simplify key steps in the product lifecycle—from issuance and service outcomes to ongoing management and settlement.”
HSBC’s tokenization history: the HSBC Orion platform, tokenized gold, and Project Guardian
This issuance builds on HSBC’s years of tokenization work. HSBC runs the HSBC Orion tokenization platform, which is used to issue native digital bonds, and has also launched retail tokenized gold in Hong Kong.
In Singapore, HSBC, Marketnode, and UOB (United Overseas Bank) previously jointly prepared a case study on digital native structured note issuances for the Monetary Authority of Singapore’s “Project Guardian,” laying the theoretical and practical groundwork for this Hong Kong issuance.
Marketnode CEO Rehan Ahmed said the deal “marks an important step toward enabling investors to manage more portfolios on-chain, combining broader access permissions with efficiency improvements.”
Frequently asked questions
What is a “digital native” structured note, and how does it differ from traditional tokenization?
According to HSBC’s description, a “digital native” structured note means the notes are issued directly on the blockchain rather than being issued first in traditional systems and then converted into digital form. This means the entire issuance process is established on the blockchain from the outset, and is considered a more native form of tokenization that can enjoy on-chain efficiency across the entire lifecycle (issuance, settlement, and subsequent services).
What kind of organization is Marketnode, and why does it play a key role in this transaction?
According to reports, Marketnode is an Asia-Pacific digital market infrastructure operator supported by the European Central Securities Depository (Euroclear), HSBC, the Singapore Exchange Group, and Temasek Holdings. In this transaction, Marketnode acts as both a tokenization agent (responsible for the on-chain issuance process) and a digital payments agent (managing the payment flow), taking on the dual roles of platform operator and overseer.
Which key information did HSBC not disclose in this transaction?
According to reports, HSBC did not disclose the issuance size, reference asset (underlying asset), note tenor, number or identities of investors, which blockchain was used, or whether settlement was cash on delivery and whether any cash portion was tokenized. It also did not explain whether it plans repeat issuances or commercialization, and did not provide details of the regulatory framework. The Defiant said it has contacted HSBC to seek more details.
