2 November 2022

HSBC, Marketnode, UOB partner on fully digital issuance of wealth products

HSBC is pleased to partner with Marketnode, a SGX Group and Temasek joint venture and digital markets infrastructure operator, and UOB to pilot fully digital issuance of wealth management products as part of a Monetary Authority of Singapore (MAS)-led collaboration on asset tokenisation, Project Guardian.

Announced by MAS on 02 November 2022, HSBC, Marketnode and UOB will collaborate in the build out of an end-to-end, issuance-to-distribution distributed ledger technology (DLT)-enabled wealth management product infrastructure, paving the way for the expansion of inclusive wealth management products and a future-ready infrastructure for Singapore’s S$5.4 trillion asset management industry.

Using DLT, the infrastructure aims to fully digitalise the wealth management product value chain which is currently paper-based, from issuance, securitisation and distribution to asset servicing of products such as structured notes and actively managed certificates (AMCs). The use of DLT will potentially halve the time to manufacture and distribute products and funds, lower issuance and servicing costs, and enhance product accessibility and transparency.

“HSBC’s participation in Project Guardian is a continuation of our efforts to collaborate with industry partners and shape the development of an innovative and responsible digital asset ecosystem in Singapore. We’re thrilled to team up again with Marketnode to take the tokenisation of financial and real economy assets one step further into wealth products. This project builds on our capabilities in distributed ledger technology and presents an opportunity to introduce a new phase for accessible wealth management products,” said Richard Godfrey, Global Co-Head, Securities Services and Securities Financing, HSBC.

“Marketnode is proud to collaborate again with our long-standing partners, HSBC and UOB, in breaking new ground in the global digital asset arena. Indeed, we hope that our work on Project Guardian will continue to showcase the transformative capabilities of digital markets infrastructure and strengthen Singapore’s proposition as a leading international financial centre in Asia. We strongly believe that the disruptive potential of tokenisation will enable new business opportunities, create value across the value chain and make wealth management more democratised,” said Rehan Ahmed, General Manager, Marketnode.

“Blockchain technology has the potential to transform the wealth management industry, addressing pain points and allowing banks to provide better services to customers. With asset tokenisation, customers will find it easier to create structured products with the bank and enjoy an improved process. Last year, UOB partnered Marketnode to experiment with tokenised bond issuances using blockchain technology in parallel with traditional processes. UOB is pleased to extend this partnership further in this latest participation in Project Guardian 2.0 and be part of MAS’s efforts to build and position Singapore as the premier financial centre in Asia,” said Mr Leong Yung Chee, Head of Blockchain & Digital Assets, UOB.

Project Guardian explores the economic potential and value-adding use cases of asset tokenisation in the context of financial services. Tokenisation is the process of digitally representing assets through smart contracts on DLT with Singapore leading the charge on tokenisation efforts of traditional financial assets.

HSBC is also a key partner in Fundnode, an industry-wide investment funds utility owned and operated by Marketnode, to improve fund settlement efficiency in Singapore.

Singapore recently announced its Financial Services Industry Transformation Map, which outlined that digitalising financial infrastructure and shaping future of financial networks as core pillars for developing Singapore as a leading financial centre in Asia.

Media enquiries to:

Chantal Samonte, HSBC Singapore | +65 8354 3665 | chantal.samonte@hsbc.com.sg

About HSBC Singapore

HSBC Group’s history in Singapore dates back to 1877 when its founding member, The Hongkong and Shanghai Banking Corporation Limited, opened its first branch on the island. A qualifying full bank, HSBC in Singapore offers a comprehensive range of banking and financial services including retail banking and wealth management; commercial, investment and private banking; insurance; forfaiting and trustee services; securities and capital markets services. One of the earliest banks to establish in Singapore, HSBC today is a prominent player in Singapore’s financial services sector serving the banking needs of multi-national corporations, home-grown businesses, private banking clients, institutional and retail customers. In May 2016, HSBC locally incorporated its retail banking and wealth management business in Singapore and established, HSBC Bank (Singapore) Limited. HSBC Singapore has a retail network of six dedicated HSBC Premier Centres, a HSBC Jade Centre @ Claymore including International Wealth Hub as well as many locations across the island providing self-service terminals.

About The Hongkong and Shanghai Banking Corporation Limited

The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 63 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,992bn at 30 September 2022, HSBC is one of the largest banking and financial services organisations in the world.

About Marketnode

Marketnode, a SGX Group and Temasek joint venture, is transforming capital markets through building end-to-end digital markets infrastructure. The Marketnode platform is powered by Gateway, a one-stop pre-trade digital issuance engine that seamlessly connects into Core, a blockchain-enabled post-trade issuance, settlement, and tokenisation platform for financial assets.

About UOB

UOB is a leading bank in Asia with a global network of around 500 offices in 19 countries and territories in Asia Pacific, Europe and North America. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. UOB is rated among the world’s top banks: Aa1 by Moody’s Investors Service and AA- by both S&P Global Ratings and Fitch Ratings. In Asia, UOB operates through its head office in Singapore and banking subsidiaries in China, Indonesia, Malaysia, Thailand and Vietnam, as well as branches and representative offices across the region.

Over more than eight decades, generations of UOB employees have carried through the entrepreneurial spirit, the focus on long-term value creation and an unwavering commitment to do what is right for our customers and our colleagues.

We believe in being a responsible financial services provider and we are committed to making a difference in the lives of our stakeholders and in the communities in which we operate. Just as we are dedicated to helping our customers manage their finances wisely and to grow their businesses, UOB is steadfast in our support of social development, particularly in the areas of art, children and education.