London-headquartered lender HSBC has successfully placed its first digitally native structured product – US dollar-denominated notes issued in Hong Kong and supported by Asia-Pacific digital market infrastructure operator Marketnode.

The operator acted as the tokenization agent, enabling digitally native issuance directly on a blockchain and, as the digital paying agent, managing payment flows between issuer and investor.

“Tokenization can help make markets more efficient and accessible,” says Suvir Loomba, HSBC’s regional head of securities services for Asia, and Marketnode board member, “by streamlining key steps across product lifecycles – from issuance and settlement, through to ongoing administration and servicing.”

Patrick Boumalham, the bank’s head of institutional sales for Asia, adds: “Structured products are an important part of investment solutions for institutional and wealth clients across Asia, where demand continues to grow. We see clear potential for tokenization to improve the efficiency of issuance, settlement and servicing, while creating a more scalable foundation for future product innovation.”

Rehan Ahmed, Marketnode’s CEO, states: “Issuance of structured notes, a mainstay of Asian investment portfolios, in a digitally native format with HSBC marks a meaningful step towards enabling investors to manage more of their portfolios on-chain, pairing broader access with  efficiency gains.”