HSBC expands blockchain-based treasury solution with cross-border tokenised deposits - Trade Treasury Payments

HSBC has added cross-border functions to its Tokenised Deposit Service (TDS), allowing corporate clients to transfer currencies across borders in real-time with 24/7 instant settlement. The upgraded service meets the growing demand of clients for instant, cross-border settlements through an always-on blockchain platform, supporting digital currency trends and the evolving needs of corporate treasuries.

A focus on market expansion

HSBC completed its first USD cross-border transaction between Hong Kong and Singapore in September, helping Ant International manage its treasury operations more efficiently as the service’s first customer.

The bank has now rolled out the service to the UK and Luxembourg markets. The expansion adds support for more currencies, including GBP, EUR, and USD for domestic payments, with plans to bring the service to more of HSBC’s key markets soon.

The multi-currency support is valuable for multinational corporations that manage treasury operations across different regions and currencies, allowing them to optimise liquidity across their global footprint more effectively.

As per Manish Kohli, Head of Global Payments Solutions at HSBC, “Tokenised deposits represent a major step forward in the future of transaction banking and open new opportunities for our clients. By combining real-time liquidity with programmability and secure settlement through blockchain, we can help clients better manage their liquidity, streamline their operations and future-proof their treasury functions in a rapidly evolving financial landscape, with the benefits of emerging forms of digital money and its associated technology.

Building on HSBC’s DLT system

TDS will use HSBC’s Distributed Ledger Technology (DLT), which transforms traditional fiat deposits into digital tokens. This conversion enables corporate clients to transfer cash instantly from their own systems without constraints on banking hours.

The tokenisation process creates digital representations of traditional deposits that retain their value and security while leveraging the advantages of blockchain technology, including transparency, immutability, and instant transfer capability. This approach provides the stability of traditional banking while adding the efficiency of digital transfers. 

TDS will also support programmability, letting clients embed conditional payments in token transfers, and enable settlement of tokenised assets for more efficient and atomic settlement. By removing cut-off times and time-zone barriers, the TDS operates seamlessly with existing treasury operations and corporate systems.

What does the future hold?

HSBC continues to expand TDS by integrating with clients’ enterprise DLT systems across key financial hubs, including the United States, Singapore, and Hong Kong. Both TDS and its links to enterprise DLT networks create a strong base for HSBC’s next-generation blockchain payment infrastructure.

Kelvin Li, General Manager of Platform Tech at Ant International, stated, “This milestone marks the next step in our joint innovation with HSBC on tokenised deposits. We believe tokenisation is key to enabling more efficient, cost-effective, and trusted global transactions, and we will continue working with HSBC to make cross-border payments seamless for businesses of all sizes.”

As blockchain technology continues to mature in the financial sector, HSBC’s investment in TDS positions the bank in the front seat of innovation in corporate banking services.