HSBC recently issued a one-year digital note worth nearly $128 million on its decentralized ledger platform Orion. The structure of this issuance is similar to the US$756 million Hong Kong digital bond previously issued by HSBC. The settlement and delivery services are also provided by the Central Monetary Unit of Debt Instruments (CMU) under the Hong Kong Monetary Authority. In order to expand the scope of sales, it also cooperates with the Agricultural Bank of China, China Construction Bank and Bank of Communications jointly underwrite the project to promote the use of distributed ledger technology and potentially introduce traditional asset liquidity.
Digital notes can be purchased on both DLT platforms and traditional custodians
The newly issued digital notes have an interest rate of 3.6% and a settlement period of two days. They are the first digital notes issued by a Hong Kong company listed on the Hong Kong Stock Exchange (HKEX) and in compliance with British regulations. It is also integrated with other CMU systems. Not only can new notes be purchased directly on Orion, users can also conduct transactions and other services through traditional methods such as custodians and CMU accounts.
Guide traditional investment users to use DLT, which is expected to promote liquidity
The issuance of digital bonds and bills can effectively reduce costs, improve efficiency and reduce risks through payment and delivery. The integration of HSBC and Hong Kong's CMU system not only provides multiple channels for users who are accustomed to purchasing assets in traditional ways, but also promotes the use of distributed ledger technology, which is expected to increase the liquidity of digital assets.
This article HSBC issues US$128 million in digital notes on Orion, introducing traditional asset liquidity first appeared on Chain News ABMedia.
