HSBC has successfully trialed a tokenized deposit system using Ant Group’s blockchain platform, enhancing corporate treasury management with instant, multi-currency transfers and participating in various CBDC trials.
HSBC has conducted a pilot program using Ant Group’s blockchain technology to facilitate tokenized deposits, allowing a corporate client to seamlessly transfer funds across its various HSBC accounts. This trial, part of the Hong Kong Monetary Authority’s Fintech Supervisory Sandbox, demonstrates the practical use of tokenized deposits in managing corporate treasuries, enabling instantaneous and after-hours financial transactions.
Vincent Lau, HSBC’s Global Head of Emerging Payments, expressed enthusiasm for the potential of tokenized deposits to revolutionize treasury management in collaboration with Ant Group. HSBC has been integrating Ant Group’s blockchain solution for treasury management since 2020, supporting transfers in multiple currencies including HKD, CNY, USD, GBP, and EUR.
HSBC’s engagement with tokenized deposits extends beyond this trial, having participated in the Regulated Liability Network experiments in the UK and US, as well as various central bank digital currency (CBDC) trials, such as Swift’s interoperability experiments and the mBridge cross-border CBDC platform. The bank has also been involved in tokenized deposit pilots with Hang Seng Bank and Visa as part of Hong Kong’s eHKD CBDC initiatives.