HSBC has become the first banking group approved to operate in the UK’s Digital Securities Sandbox. It comes as the UK accelerates plans to develop regulated digital asset markets.
Patrick George, HSBC’s global head of markets and securities services, said the approval marked a milestone for digital assets in Britain.
“We welcome the Bank of England’s approval for HSBC Orion to be the first digital assets platform to go live in the Digital Securities Sandbox.
“Having been appointed earlier this year as the issuance platform provider for the DIGIT, we look forward to the inaugural DIGIT pilot issuance, which will be a key event for digital assets in the UK,” he said.
The Bank of England has approved HSBC Orion, the bank’s digital assets platform, to operate within the sandbox as a Digital Securities Depository, enabling the issuance, servicing and settlement of digitally native bonds, including the UK’s planned digital gilt instrument, known as DIGIT.
The Digital Securities Sandbox is jointly run by the Bank of England and the Financial Conduct Authority. It provides a live regulatory environment for firms to test distributed ledger technology and other innovations in securities issuance, trading and settlement.
The announcement follows confirmation by Chancellor Rachel Reeves at her Mansion House speech that the first DIGIT issuance is expected early next year.
HSBC said Orion has already supported more than $5bn of digital bond issuance globally, reflecting growing interest among issuers in tokenised financial instruments.
The UK launched the sandbox in 2024 to help firms explore how distributed ledger technology could modernise capital markets while maintaining regulatory oversight. The scheme is intended to support innovation, improve efficiency and help shape a permanent framework for digital securities.
For HSBC, one of the world’s largest banking groups, the approval strengthens its position in a fast-developing market as financial institutions increasingly test blockchain-based infrastructure for bond and securities trading.
