How is tokenisation reshaping cash management solutions?

HSBC and Citi allow 24/7 money transfers using the tech.

Tokenisation is rapidly transforming the way banks deliver cash management services, letting companies access real-time liquidity and move funds securely across borders without the constraints of traditional banking hours or settlement delays.

Tokenised assets—digital representations of money or financial instruments—are streamlining global treasury operations, cash management experts told Asian Banking & Finance.

By leveraging blockchain technology, companies can now transfer funds 24/7, eliminating cut-off times and multi-day settlement periods, they added.

Major global banks have started integrating tokenisation into their treasury offerings. In June, HSBC Holdings Plc launched its Tokenised Deposit Service, a blockchain-based settlement platform that facilitates real-time Hong Kong and US dollar payments between corporate wallets held at its Hong Kong branch. The service seeks to enhance liquidity management and operational efficiency for corporate clients.

Last year, Citigroup, Inc. introduced Citi Token Services, which allows liquidity transfers between participating Citi branches around the clock. The service is part of the bank’s broader strategy to modernise its cash management infrastructure using digital assets.

Broader adoption will depend on industry-wide collaboration, regulatory modernisation, and sustained demand driven by generational shifts in investor attitudes, Deutsche Bank and Baker McKenzie said in a joint report in April. There’s also a need to address liquidity and adoption challenges to ensure long-term viability.

Asian Banking & Finance spoke with two bankers to know how tokenisation is reshaping the way banks offer cash management solutions.

Lewis Sun, global head of domestic and emerging payments at HSBC:
Real-time treasury, with which corporates and institutions can move their funds at any time of the day, on any day of the week, is another step closer to realisation. Advancements in tokenisation are transforming how corporate treasuries manage their liquidity against a backdrop of technological changes and shifting supply chains.

As treasurers face growing demands to manage global liquidity in real time, the limitations of traditional payment infrastructure become increasingly apparent. Cross-border transactions in particular are often subject to cut-off times, batch processing, and limited visibility. Even within local markets, real-time payments may be restricted to local currency.

Tokenised deposits change this paradigm. By converting traditional commercial bank deposits into blockchain-based tokens—otherwise known as tokenised commercial bank money or tokenised bank deposits—treasurers now have 24/7 access to secure, digitised liquidity, enhancing the visibility and control of their finances.

As tokens reflect value on blockchain, payment confirmations can occur instantaneously, enabling round-the-clock visibility across jurisdictions. Moreover, the embedded smart-contract feature on a blockchain network enables programmable payments and opens up many more use cases.

For corporates operating across multiple markets, this translates into a more agile and resilient treasury management. With the ability to confirm and reflect transactions in real time, treasurers can reduce reliance on end-of-day processing windows and instead manage working capital dynamically throughout the day.

As a world-leading payment bank, HSBC launched its Tokenised Deposit Service earlier this year in Hong Kong and Singapore, two of Asia’s leading treasury centres, with Ant International being the first to adopt our service. Within HSBC’s new infrastructure, Ant executed tokenised transfers between their blockchain wallets, demonstrating how the solution can enhance intra-group fund flows, allowing for operational efficiency and flexibility, as well as delivering meaningful business impact.

Tokenisation is still in its nascent stage, and broader adoption will require continued progress in regulatory clarity, cross-bank interoperability, and wider ecosystem integration. But the direction is clear: as tokenised solutions evolve, they are expected to complement traditional cash infrastructure, offering businesses new levels of flexibility and efficiency in managing their global liquidity.

Ambrish Bansal, managing director and global head of liquidity management products at Citi
The business world never sleeps. In today's always-on economy, real-time financial transactions are no longer a luxury; they're a necessity. Businesses, from Main Street to Wall Street, need the power to move money instantly, efficiently, and globally. Citi Token Services seeks to deliver precisely that, ushering in a new era of efficient cross-border cash management.

Traditional banking systems and processes, with their inter-bank cut-off times, holidays, and weekend closures, simply can't keep pace with the demands of modern business. Moving funds across borders often involves delays, complexities, and added costs, hindering growth and efficiency.

Citi Token Services revolutionizes cross-border cash management by leveraging digital tokens on Citi’s privately permissioned blockchain network. This innovative solution enables instantaneous fund movements across the globe, bypassing the limitations of traditional banking systems.

Citi Token Services is already live in four major markets, processing a significant number of transactions and empowering clients with liquidity management impact. In Hong Kong for example, some of our e-commerce clients are using the service for efficient intercompany transactions across multiple markets, therefore funding their Hong Kong outbound payments with more efficiency and speed.

In today’s global, real-time world, businesses demand speed, simplicity and 24/7 access to liquidity. Citi Token Services offers a secure, scalable solution designed to transform cross-border cash management.

By leveraging Citi’s private blockchain network, clients can move liquidity instantly across markets using their existing fiat accounts—while Citi handles the complexity behind the scenes.

Early success in regions like Hong Kong shows how we’re increasing speed, reducing friction and transforming how institutions manage cash globally.