HSBC has completed its first blockchain-based issuance of a digitally native structured product, another step in the growing use of tokenization across traditional finance in Hong Kong.
The bank issued U.S. dollar-denominated structured notes through a private placement for institutional investors, with the transaction carried out entirely on blockchain infrastructure.
Asia-Pacific digital market infrastructure provider Marketnode supported the issuance by serving as both the tokenization agent and digital paying agent. The company facilitated the digital issuance of the notes while managing payment flows between HSBC and the investor.
JUST IN: @HSBC said it issued its first onchain structured product, with Marketnode as its tokenization agent.
Read more here: https://t.co/OUSbe7tlTy pic.twitter.com/NHdZNKrRFF
— The Defiant (@DefiantNews) July 10, 2026
The pilot was designed to test how blockchain technology can improve the issuance, settlement, administration, and servicing of structured products for institutional markets.
How did the blockchain issuance work?
Unlike conventional structured note issuances, the notes were created directly on blockchain infrastructure, allowing key processes to be handled digitally from issuance through settlement.
Marketnode managed the tokenization of the notes and handled payment obligations during the transaction, demonstrating how blockchain can support the full lifecycle of structured financial products. HSBC said the pilot is part of its digital assets strategy aimed at improving efficiency in capital markets through tokenization.
Suvir Loomba, HSBC’s Regional Head of Securities Services for Asia and a board member of Marketnode, said the transaction builds on the bank’s digital asset initiatives and reflects collaboration with market participants to develop practical blockchain solutions for institutional finance.
Why is HSBC expanding its tokenization efforts?
HSBC believes tokenization can simplify several stages of structured products, including issuance, settlement, administration, and ongoing servicing.
Patrick Boumalham, HSBC’s Head of Institutional Sales for Asia, said the bank sees strong potential for tokenization to improve operational efficiency while providing a scalable foundation for future financial products.
As one of Asia’s major issuers of structured products, HSBC has continued to explore blockchain applications that can modernize traditional financial infrastructure. Meanwhile, HSBC also completed a pilot of its Tokenized Deposit Service (TDS) on the Canton Network, marking its first simulation of issuing and settling tokenized deposits on a public blockchain designed for regulated financial institutions
Hong Kong pushes deeper into tokenized finance
In June, the Hong Kong Monetary Authority formed a tokenized bond expert group following the government’s issuance of more than HK$6.8 billion (about $868 million) in tokenized bonds. The group includes HSBC, JPMorgan Securities, Standard Chartered, UBS, Ant Digital, HashKey Group, and other industry participants working on legal standards, market practices, and infrastructure for tokenized bonds.
HSBC has also strengthened its digital asset footprint in the city. In April, the bank became one of the first institutions to secure a Hong Kong Monetary Authority stablecoin issuer license under the city’s new regulatory framework, allowing it to issue regulated stablecoins alongside Standard Chartered-backed Anchorpoint Financial.
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