HSBC and Ant Group Unveil Deposit Tokenisation Tool for Corporate Clients

The deposit tokenisation facility allows corporate clients to issue, transfer and redeem deposit tokens in real-time.
Image source: Bunhill/Getty Images

Quick take:

  • HSBC has successfully tested a suit of deposit tokenisation tools for corporate clients.
  • The test was carried out in collaboration with Ant Group.
  • The test was conducted under the Hong Kong Monetary Authority Fintech Supervisory Sandbox and covers the issuance, transfer, and redemption of deposit tokens.

HSBC and Ant Group have teamed up to launch a deposit tokenisation facility for corporate clients. The investment bank said it successfully leveraged tokenised deposits in intra-group payment transactions in collaboration with Ant Group.

The initiative will focus on deposit tokenisation for corporate clients, allowing always-on, real-time treasury fund movement between accounts in the HSBC network. 

The test was conducted in collaboration with the Hong Kong Monetary Authority’s Fintech Supervisory Sandbox arrangement and included the issuance, transfer, and redemption of deposit tokens.

This announcement comes on the heels of Citi’s announcement of a similar product, while JPMorgan’s Onyx Blockchain revealed it was now processing up to $2 billion in transactions daily, amid rising demand for deposit tokenisation.

Last month, Mastercard teamed up with Cuscal, Mintable, and the Reserve Bank of Australia to enable CBDC tokenisation across blockchains.

The demand for tokenised treasury products is on the rise as organisations seek to leverage the speed and low costs involved in transacting on the blockchain.

According to the announcement on Wednesday, HSBC used the blockchain platform developed by Ant Group. The platform was developed to improve turnaround time, cost efficiency, and visibility of treasury fund transfers.

The test is seen as a significant milestone in the development of products and tools that will improve research on how to implement blockchain and tokenisation in corporate treasury management.

HSBC said it will continue to use tokenised deposits, alongside other financial services to improve treasury management processes for its clients and customers. The company is also looking to continue sharing its best practices and expertise with other markets as more financial institutions embrace tokenisation.


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