HSBC Takes Lead In Marketnode’s Series A Funding Round

Marketnode, a Singapore-based digital market infrastructure firm, recently announced that it has completed its Series A funding round. This round was led by global banking giant HSBC and supported by its existing investor, Temasek. The firm did not reveal the specific amount of the investment.

Marketnode Seeks To Enhance Its Financial Market Infrastructure

Marketnode revealed that it plans to use the funds to grow its neutral financial market infrastructure for important asset classes in the financial industry, such as structured products and digital fixed-income. The firm intends to create a multi-asset ecosystem, beginning in the Asia-Pacific region, according to the announcement.

Marketnode, a digital asset venture created by SGX Group and Temasek, has been working with HSBC since 2020. Both entities took part in an asset tokenization project, Project Guardian, led by the Monetary Authority of Singapore, along with other digital bond projects.

HSBC’s Group Head of Innovation, Ventures, and Digital Partnerships, Ian Glasner, stated that HSBC’s investment in Marketnode marks a significant achievement.

The investment also demonstrates their shared dedication to constructing a strong digital infrastructure for multiple assets throughout their markets. The partnership also assists HSBC customers in entering the digital assets world securely. Glasner added that John O’Neill from HSBC will also be joining the board.

Marketnode President Rehan Ahmed stated that combining Marketnode’s expertise in financial market infrastructure with HSBC’s leading global platform offers a unique chance to develop the next generation of neutral and trusted market infrastructure.

Additionally, the partnership will support the launch of Marketnode’s investment fund infrastructure, Fundnode, using distributed ledger technology, along with future tokenized asset offerings.

Marketnode Aims To Create A Secure Environment For Digital Asset Transactions

Temasek is Singapore’s government-owned investment firm, while SGX Group runs the Singapore Exchange.

Meanwhile, Singapore has been adding extra regulations for cryptocurrency in addition to its strict licensing system. Last month, Singapore authorities revealed they are broadening the range of firms regulated under its payment services regulations to oversee digital asset companies for user protection and anti-money laundering.

Though it’s simple to label Marketnode as a tokenization platform, considering it operates in regulated markets, its function is much wider. Its features involve managing, automating asset servicing, standardizing data and workflows, and handling documents.

HSBC has increased its tokenization efforts over the last few years. Its HSBC Orion platform was employed in Hong Kong for the biggest digital bond issuance to date ($750m). It also introduced a solution for tokenized gold.