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HSBC (0005) and Standard Chartered said they participated in the government's fourth digital green bond of around HK$20 billion, the largest digital bond issuance globally to date, supporting efforts to promote digital bonds in Hong Kong's fixed income market.
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The bond is denominated in HK dollars, yuan, US dollars, and euros under the Government Sustainable Bond Programme.
HSBC will act as the joint global coordinator, joint lead manager, joint bookrunner, trustee, and principal paying agent, with HSBC Orion serving as the digital assets platform and connecting to EnsembleTX to facilitate interbank settlement using tokenised deposits. Investors in both the Hong Kong dollar and yuan tranches can settle using tokenised central bank money alongside traditional settlement rails in the primary issuance process.
Standard Chartered will act as joint global coordinator, joint bookrunner, joint lead manager, and joint green and sustainable bond structuring bank to support the bond issuance.
David Liao, co-chief executive, Asia and Middle East, HSBC, highlighted that the transaction shows how digital assets, tokenised deposits and tokenised central bank money can operate across interoperable infrastructure to improve speed and efficiency, while still allowing established settlement arrangements where suitable.
He said the transaction brings together the key components needed for broader adoption: choice, interoperability and practical market utility.
David Yim, head of capital markets, Greater China and North Asia at Standard Chartered, said that by enabling T+1 settlement, the transaction demonstrates the potential of next-generation financial infrastructure to enhance market efficiency and support overall market development.
