HSBC unveils Tokenised Deposit Service in Hong Kong for treasury management

Ant International is HSBC’s first client to adopt the service.

HSBC’s Tokenised Deposit Service has gone live in Hong Kong.

Tokenised Deposit Service is a blockchain-based settlement service that will support treasury management with real-time HKD and USD payments.

It supports settlement requirements for tokenisation use cases, including those that are being explored under the Hong Kong Monetary Authority’s Project Ensemble, the bank said in a press release.

Ant International is HSBC’s first client to adopt the service.

“Tokenised deposits, when supported by regulated financial institutions, can offer a safe and fully compliant approach to improving payments and cash management for corporates,” said Lewis Sun, global head of domestic and emerging payments, Global Payments Solutions, HSBC.

“We are pleased to launch the Tokenised Deposit Service in Hong Kong, an international financial centre committed to driving digital money innovation,” Sun said.

Tokenisation Deposit Service also marked the first live pilot initiative supported by HKMA’s Supervisory Incubator for Distributed Ledger Technology.

Through this supervisory arrangement, HSBC seeks to demonstrate how banks can harness the advantages of DLT and manage its associated risks, the bank said.