HSBC launches Hong Kong’s first blockchain payment service using tokenized deposits for faster transactions.
The new service supports real time Hong Kong and US dollar transfers between HSBC wallets all day.HSBC plans to expand the blockchain deposit system to Asia and Europe later this year.
HSBC Holdings has launched Hong Kong’s first blockchain-based settlement service. The move aims to streamline corporate payments using tokenized bank deposits. The service, developed in collaboration with Ant International, follows a successful pilot on Ant’s Whale blockchain platform.
https://twitter.com/WuBlockchain/status/1926080780578566644 Tokenized Deposits Enable Faster Payments
The new platform converts traditional bank deposits into digital tokens. These tokens allow for real-time transfers between HSBC wallets. Clients can transfer Hong Kong and US dollars instantly, around the clock, within the city.
HSBC stated that the service cuts processing time and reduces costs for business clients. It offers a more efficient alternative to traditional payment systems. It also aligns with regulatory frameworks, ensuring compliance while adopting blockchain.
Initial Access Limited to Hong Kong Clients
At launch, the service is available only to corporate clients in Hong Kong. HSBC plans to expand the offering to other Asian and European markets later this year. The bank expects regional demand for blockchain-based settlement systems to rise.
Ant International was the first client to complete a real-time transfer using HSBC’s tokenized deposits. The company used the system through its treasury platform, enhancing internal liquidity operations. The success of this transaction helped shape HSBC’s current product.
Service Built Under Regulatory Sandbox
The initiative is part of the Hong Kong Monetary Authority’s (HKMA) Distributed Ledger Technology Supervisory Sandbox. HSBC’s tokenized deposit service is the first live rollout supported by this program. The sandbox allows banks to explore new technologies under close regulatory oversight.
HSBC had previously completed multiple proof-of-concept tests under the HKMA initiative. These projects focused on tokenization and digital money applications. The bank is also participating in Hong Kong’s central bank digital currency testing regime, announced in August.
Infrastructure Development for Digital Settlement
HSBC said it will continue building infrastructure to support broader blockchain use. The aim is to offer seamless digital money movement for institutional clients. The bank plans to introduce more capabilities to handle digital currencies and tokenized assets.
This service marks a step toward integrating blockchain into traditional financial operations. By offering real-time settlements, the system can support more dynamic cash management for businesses. HSBC expects more use cases will emerge as demand grows.
The new service demonstrates how traditional banks can adopt blockchain without compromising regulatory compliance. HSBC said it will expand access based on client needs and regulatory developments.