HSBC Bank Plc has become the first firm approved by the Bank of England to operate in the UK’s Digital Securities Sandbox (DSS), according to the bank.
The approval allows HSBC Orion to operate as a Digital Securities Depository (DSD), supporting the issuance, servicing and settlement of digitally native bonds, including the planned digital gilt (DIGIT) and corporate bonds.
The DSS, established by the Bank of England and the Financial Conduct Authority, provides a live regulatory environment for testing new technologies, including distributed ledger technology, in securities issuance, trading and settlement.
Patrick George, Global Head of Markets & Securities Services at HSBC, said the bank “welcome[s] the Bank of England’s approval” and added that HSBC is “looking forward to the inaugural DIGIT pilot issuance.”
HSBC noted that it had been appointed earlier this year as the issuance platform provider for the DIGIT. The announcement follows the Chancellor of the Exchequer’s confirmation that the first DIGIT issuance is expected early next year.
