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A new tokenisation platform to support and accelerate the growth of digital assets

HSBC announces that it will launch HSBC Orion – its new proprietary tokenisation platform that financial institutions and corporates will be able to use to issue digital bonds based on distributed ledger technology.

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.

HSBC Orion leverages blockchain technology as a ‘single source of truth’, whereby asset and settlement tokens sit natively and securely on the platform’s ledger. Transactions occur by exchanging these tokens, achieving digital ‘delivery versus payment’. HSBC intends to expand the use of HSBC Orion to other locations and asset classes in due course.

John O’Neill, Global Head of Digital Asset Strategy, Markets & Securities Services, HBSC, said: “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.”

Asif Sherani, Managing Director, Head of DCM Syndicate, EMEA, said: “We’re delighted to be working with the European Investment Bank to explore launching a tokenised bond on HSBC Orion. Tokenisation opens up opportunities for fixed-income issuance, including faster processing and improved operational performance.”

Zhu Kuang Lee, Chief Digital, Data & Innovation Officer, HSBC Securities Services, said: “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.”

About HSBC

HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 63 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,985bn at 30 June 2022, HSBC is one of the world’s largest banking and financial services organisations.

Photo by Joshua Lawrence on Unsplash

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