- HSBC launched a Tokenised Deposit Service in Hong Kong, serving corporate clients with 24/7 digital transfers.
- Ant International is the first company to use the new service, following its role in helping pilot the platform.
- The solution allows instant transfers of US dollars and local currency between client wallets, operating on HSBC‘s own technology network.
- The service is live under the Hong Kong Monetary Authority’s Distributed Ledger Technology Supervisory Incubator pilot.
- Other major banks, such as Citi, DBS, JP Morgan, and UBS, have also entered the tokenized deposit market.
HSBC has introduced a new Tokenised Deposit Service in Hong Kong. The platform allows its corporate customers to transfer funds using digital tokens. Clients can move money in both Hong Kong and US dollars at any time of day.
The launch makes HSBC the first bank in the city to offer live tokenized deposits after testing in Hong Kong’s Project Ensemble Sandbox. Ant International is the first customer to use the new system. According to HSBC, the service builds on earlier blockchain and digital deposit projects developed with Ant International.
Ant International piloted the technology, offering feedback to help shape the product. HSBC reports that the initial transaction for Ant used the company’s Whale operating system, which supports blockchain-based payments. This platform processes most of Ant International’s internal cross-border payments in 2024. “HSBC shares our commitment to redefine the future of liquidity management through innovation, technology and collaboration. We believe that tokenisation is the key to bridge the stability of traditional banking, with the efficiency of blockchain,” said Kelvin Li, General Manager of Platform Tech at Ant International.
The goal of tokenized deposit services is to offer corporate treasurers faster and more transparent financial transfers. With these features, firms avoid delays and business hour limits that come with regular bank transfers. HSBC states that its solution currently operates only in Hong Kong. The platform could offer further features in the future, such as automated smart contracts.
The service operates as a live pilot in the Hong Kong Monetary Authority’s Supervisory Incubator for Distributed Ledger Technology. This pilot allows banks to develop and test new solutions using blockchain, a type of distributed database for recording transactions.
Other banks—including Citi, DBS, JP Morgan, and UBS—have recently introduced similar tokenized deposit services. Further research from Ledger Insights explores how banks are adopting stablecoins, tokenized deposits, and distributed ledger technology for payments.
For more, see HSBC, Ant International, and Ledger Insights research.
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