TechFlow reported, citing Ledger Insights, that HSBC has issued a 1 billion HKD (approximately 128 million USD) one-year digital note using distributed ledger technology (DLT), similar to the Hong Kong sovereign digital bond issuance earlier this year. This marks the first digital note listed on the Hong Kong Stock Exchange (HKEX) by a corporate entity in Hong Kong, as well as the first English-law digital bond issued in Hong Kong. The note carries an annual interest rate of 3.6% and features a two-day settlement window.
The digital bond was issued through HSBC's Orion platform, integrated with the local Central Moneymarkets Unit (CMU), enabling investors who do not directly participate in the DLT platform to purchase the note through traditional channels. While digital bond issuance promises greater efficiency and cost reduction, liquidity concerns remain; the integration with CMU helps mitigate such issues.
