14 November 2019

HSBC partners with SGX and Temasek to explore DLT for fixed income

HSBC Singapore today announced a trial with Singapore Exchange (“SGX”) and Temasek to explore the use of distributed ledger technology (“DLT”) for the issuance and servicing of fixed income securities, the first such end-to-end digitalisation initiative focusing on the Asia bond markets.

While Asia’s fixed income markets continue to see rapid growth, bond issuance and servicing processes remain inefficient due to the absence of a single platform for the exchange of information between multiple parties and tracking of a bond throughout its lifecycle.

The trial will make use of tokenised securities and smart contracts over a permissioned ledger to streamline these workflows and reduce process friction, lowering costs for issuers, investors, bond arrangers and custodians.

Tony Cripps, Chief Executive Officer at HSBC Singapore, said: “The potential of DLT is an evolving story, and its role in overcoming inefficiencies in the fixed income market is yet to be seen. Only by collaborating with market participants will we fully understand its actual viability; by partnering with SGX and Temasek, we hope to explore whether digital assets could become a reality.”

Lee Beng Hong, Head of Fixed Income, Currencies & Commodities at SGX, said: “As Asia’s largest listing venue for bond issuers globally, we are excited to collaborate on a new operating model that could potentially bring cost savings to issuers, arrangers and investors. Having HSBC and Temasek on board will enable us to evaluate holistically whether smart contracts and DLT can solve some of the long-standing challenges in the fixed income issuance ecosystem.”

Chia Song Hwee, President & Chief Operating Officer at Temasek, said: Blockchain technology has great potential in transforming businesses and opening up new opportunities. We are pleased to partner with HSBC and SGX on this test-bed, with an eye on how the technology can potentially be applied more broadly across a range of products. Such partnerships and initiatives allow us to advance the impact of emerging technologies and better understand how economies can benefit.”

Disclaimer

This article was prepared by The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch (“HSBC”).

The article is intended for those who access it from within Singapore and is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.

The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch (“HSBC”) makes no representation or warranty (express or implied) of any nature nor is any responsibility of any kind accepted with respect to the completeness or accuracy of any information, projection, representation or warranty (expressed or implied) in, or omission from, this article. No liability is accepted whatsoever for any direct, indirect or consequential loss (whether arising in contract, tort or otherwise) arising from the use of or reliance on this article or any information contained herein by the recipient or any third party.  

This article does not constitute an offer or solicitation for, or advice that you should enter into or start using, any of products and services (HSBC’s or otherwise). Recipients should not rely on this article in making any decisions and they should make their own independent appraisal of and investigations into the information described in this article. No consideration has been given to the particular business objectives, financial situation or particular needs of any recipient.

This article should be read in its entirety and should not be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC.

Copyright© The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch 2019. All rights reserved.

Contact us

Customer Service and Technical Support

You are leaving the HSBC Commercial Banking website.

Please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.