UK Treasury Selects HSBC Blockchain for Digital Gilt Pilot

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: 4 days ago

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HSBC-1.89%

Should l Buy HSBC?

Source: seekingalpha

Blockchain Platform Selection: The UK Treasury has chosen HSBC Holdings' blockchain platform for the pilot issuance of digital gilts, marking a significant step in updating the UK capital markets infrastructure and expected to enhance market efficiency.
Bond Issuance Innovation: By issuing bonds on the blockchain, HSBC claims it will significantly reduce settlement times, thereby improving the structural efficiency of the UK's debt capital markets and enhancing market liquidity.
Regulatory Sandbox Testing: The Treasury plans to issue the digital bonds within a regulatory sandbox overseen by the UK Financial Conduct Authority, aiming to assess technical and legal risks in preparation for future market rollout.
Market Impact Expectations: HSBC Holdings' market capitalization has surpassed $300 billion for the first time, reflecting its leading position in European banking and providing new growth opportunities for digital transformation.

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About HSBC

HSBC Holdings plc (HSBC) is a banking and financial services company. Its business segments include Hong Kong, UK, Corporate and Institutional Banking (CIB), and International Wealth and Premier Banking (IWPB). Its Hong Kong business comprises retail banking and wealth and commercial banking of HSBC Hong Kong and Hang Seng Bank. Its UK business comprises UK retail banking and wealth (including first direct and M&S Bank) and UK commercial banking, including HSBC Innovation Bank. The CIB segment is formed from the integration of its commercial banking business (outside the UK and Hong Kong) with its global banking and markets business. The IWPB segment comprises premier banking outside of Hong Kong and the UK, its global private bank, and its asset management, insurance and investment distribution businesses. Its customers worldwide through a network covering 58 countries and territories. Its customers range from individual savers and investors to companies, governments and others.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

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