HSBC Gets Bank of England Approval to Operate in UK Digital Securities Sandbox

HSBC has received approval from the Bank of England to operate in the United Kingdom's Digital Securities Sandbox, with its digital asset platform HSBC Orion set to support digital securities issuance, servicing and settlement. According to Odaily, HSBC said HSBC Orion will operate in the sandbox as a digital securities depository and described itself as the first company approved by the Bank of England to go live in the sandbox. The platform will support native digital bond issuance, including the United Kingdom's planned Digital Gilt Instrument and corporate bonds. HSBC said HSBC Orion has facilitated more than $5 billion in digital bond issuance globally. The U.K. Treasury said the first DIGIT transaction is expected in the first quarter of 2027, and HSBC and London Stock Exchange Group have signed a memorandum of understanding to develop connectivity that will support investor participation in the pilot issuance.