The Inter-American Development Bank (IDB) priced its first digital bond in pound sterling, leveraging HSBC’s blockchain-based platform. The issuance was governed by Luxembourg law, which allows bonds and other securities to be issued, transferred, and securely held in digital form. The 15-month, £5 million, fixed-rate bond was jointly managed by HSBC Bank and NatWest.
HSBC’s platform, Orion, is a secure, private blockchain which serves as the official record of bond ownership and provides a framework to manage the instrument and its lifecycle events. The transaction also integrated the clearing process into the Orion’s platform, streamlining the issuance.
“Blockchain-based settlements represent a major step forward in modernizing debt-capital markets, offering benefits such as operational efficiency, reduced costs, and enhanced transparency for market participants,” said Gabriel Yorio, the IDB’s vice president for finance and administration. “This bond issuance aligns with the IDB’s commitment to embracing cutting-edge technologies in financial solutions, driving greater efficiency in our operations and supporting innovation in capital markets,” he added.
“We are proud to have worked with the IDB to issue their first digital bond on HSBC Orion. HSBC is committed to developing digital asset solutions that serve our customers,” said John O’Neil, HSBC group head of digital assets and currencies.
“We are delighted to have supported the IDB on this digital-bond issuance, underscoring our role as a trusted partner to guide customers through the evolution of digital capital markets,” said Karen Manku, NatWest director, SSA Debt Capital Markets.
This pioneering transaction reinforces the IDB’s commitment to innovation as it continues to explore new financial instruments and services that drive efficiency and enable it to better support social and economic development across Latin America and the Caribbean.
