HSBC plans to expand its tokenized deposit service to the US and UAE markets.
TL;DR
HSBC will launch its Tokenized Deposit Service in the US and UAE by mid-2025, enabling 24/7 instant corporate transfers and improving liquidity. The service, already in Asia and Europe, will add UAE dirhams and explore programmable payments and stablecoin partnerships.
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According to Odaily, HSBC announced plans to begin offering its Tokenized Deposit Service (TDS) to corporate clients in the United States and the United Arab Emirates (UAE) in the first half of next year, in order to expand its application in the blockchain payments sector.
Service Scope: TDS allows corporate clients to complete local and cross-border fund transfers 24/7 within seconds, significantly improving liquidity management efficiency. The service is available in Hong Kong, Singapore, the UK, and Luxembourg, and supports transactions in Euros, British Pounds, US Dollars, Hong Kong Dollars, and Singapore Dollars.
New Currency: As HSBC expands its business into the Middle East, it will increase its support for the UAE dirhams next year.
Tokenized Deposits vs. Stablecoins: Tokenized deposits are digital notes issued by banks, representing claims on existing deposits, part of the existing banking system, and capable of paying interest. Unlike stablecoins, which are typically issued by non-bank entities and backed by high-quality liquid assets, tokenized deposits are more attractive to corporate clients holding substantial funds due to their adherence to traditional regulatory frameworks.
Future Outlook: HSBC plans to expand the application of tokenized deposits in programmable payments and autonomous funds management systems (leveraging automation and AI to manage cash and liquidity risk). In addition, HSBC is exploring the stablecoin industry and in talks with several issuers to provide reserve management and settlement account services, but has not ruled out the possibility of issuing its own stablecoin or jointly issuing one with other banks in the future.