HSBC has executed a Hong Kong dollar repo transaction with The Bank of East Asia, Limited (BEA), which used Hong Kong government digitally native green bonds as collateral for financing purposes. This is understood to be the first repo in Hong Kong involving digital bonds.
Using HSBC Orion as the digital assets platform, HSBC helped the Hong Kong Monetary Authority complete a HKD6bn-equivalent digitally native green bond issuance for the Hong Kong government across four currencies: HKD, CNH, USD, EUR. In Hong Kong, the HKMA’s Central Moneymarkets Unit operates HSBC Orion, enabling digitally native bond issuance and settlement via the CMU’s infrastructure.