Today, HSBC Singapore announced a partnership with Singapore Exchange (SGX) and state-owned Temasek for a blockchain trial for servicing fixed income securities. The project will focus on end-to-end digitalization of the Asian bond markets.
According to the
Asian Development Bank, the region’s local currency bond market hit US$15.3 trillion at the end of June 2019. Asia’s fixed income markets are seeing continuous growth due to development in the region. But the bond issuance and servicing processes have not been updated at the same pace.
To address this, HSBC aims to build a single platform for information exchange between stakeholders and tracking a bond through its lifecycle. The trial will experiment with tokenized securities and smart contracts over blockchain to streamline workflows and reduce costs for issuers, investors, bond arrangers and custodians.
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