HSBC Orion approved in UK sandbox

HSBC has received approval from the United Kingdom — Bank of England to operate its digital assets platform, HSBC Orion, as a Digital Securities Depository (DSD) within the UK's Digital Securities Sandbox (DSS). This is the first Gate 2 approval in the sandbox, allowing HSBC to issue, service, and settle digitally native bonds, including corporate bonds up to £900 million and the UK's planned Digital Gilt Instrument (DIGIT). The first DIGIT transaction is expected by Q1 2027. HSBC also signed a memorandum of understanding with the London Stock Exchange Group (LSEG) to develop a bilateral DSD link for investor access. HSBC Orion has facilitated over $5 billion in digital bond issuances globally, including transactions for the European Investment Bank, China — Hong Kong, Luxembourg, QNB Group, and First Abu Dhabi Bank. The DSS, launched in 2024 by the United Kingdom — Bank of England and United Kingdom — Financial Conduct Authority, runs until January 2029 and allows testing of distributed ledger technology for securities markets.