HSBC Spearheads Series A Financing For MarketNode
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Last week, Marketnode, a virtual market infrastructure provider, secured investment for its Series A funding round spearheaded by HSBC, the UK-based international banking and financial services organization. The exact capital raised in the round still needs to be revealed.
Since 2020, HSBC and MarketNode have participated in MAS’s Project Guardian program, Singapore’s fund settlement platform Fundnode, and multiple digital bond ventures.
Marketnode Will Use The Funds To Develop Its Systems
The president of Marketnode, Rehan Ahmed, said that HSBC’s backing reflects the natural growth of their partnership across various asset categories since Marketnode’s origin.
The merging of HSBC’s top global platform and Marketnode’s FMI operational knowledge offers a unique chance to shape the upcoming reliable and impartial market infrastructure.
The funding, which also saw participation from current investor Temasek, will be utilized to grow Marketnode’s systems across crucial asset categories like structured products and digital fixed revenue. It will also be used for the forthcoming debut of Fundnode and introduce other virtual asset offerings.
As part of the financial backing, John O’Neill, international chief of virtual asset strategy at HSBC, will become part of Marketnode’s Management Board.
Ian Glasner, director of HSBC’s digital partnerships, ventures, and innovation group, also commented on the investment. He stated that the support to Marketnode shows that the two companies are committed to developing a solid multi-asset digital platform across the markets. This would help customers venture into the domain of virtual assets with safety and security.
Marketnode was established by investment firm Temasek and stock exchange operator Singapore Exchange (SGX). The company might introduce its fund’s settlement system, developed on blockchain technology, to companies around the end of June.
Fundnode Aims To Streamline Fund Transactions
The firm said it took around a year to develop a commercially feasible funds settlement platform named Fundnode instead of the usual three to five years. During its initial testing phase, the company tried out the system for managing funds transactions, processing, and keeping records.
During the forthcoming release, Fundnode will be fully prepared to form a partner network, creating an ecosystem.
The introduction of Fundnode takes place nearly two years after Marketnode first revealed plans to develop a funds settlement system in partnership with the Singapore Funds Industry Group. Fundnode is among the two products created by Marketnode, which was established in 2021. The second offering is Gateway, an all-in-one tokenization, issuance, and asset servicing platform.
HSBC has stepped up its tokenization endeavors over the past few years. Its HSBC Orion system was utilized in Hong Kong for the highest digital bond offering ($750m). It also rolled out a product for tokenized gold.
