HSBC announced that its tokenised deposit programme can transform traditional bank deposits into digital tokens on a blockchain platform. According to Lewis Sun, HSBC’s global head of domestic and emerging payments for global payments solutions, this service has the potential to reduce costs and processing times compared to conventional banking systems. The tokenised deposit infrastructure allows corporate clients to make real-time payments in Hong Kong and US dollars and to transfer funds between HSBC Hong Kong wallets around the clock, HSBC stated. Currently, the application is limited to Hong Kong but is set to expand to markets in Asia and Europe in the second half of the year, it added. “Tokenised deposits, when offered by regulated financial institutions, provide a secure and fully compliant method to enhance payments and cash management for companies, ” said Sun. He also noted, “Hong Kong is an international financial centre dedicated to advancing digital money innovation.

This service establishes a new standard for efficiency and innovation in digital money solutions for companies. ” Ant International, an affiliate of Alibaba Group Holding, which owns the Post, was the first client to successfully complete an instant fund transfer using deposit tokenisation.