HSBC is expanding its tokenized deposit services to corporate clients in the United States and the United Arab Emirates by mid-2025, marking another milestone in the global banking industry’s adoption of blockchain technology.
HSBC will start offering tokenized deposits to its corporate clients in the US and the United Arab Emirates in the first half of next year, as banks expand their push into blockchain technology for payments https://t.co/RglZfpQTJO
— Bloomberg (@business) November 18, 2025
The initiative is part of HSBC’s ongoing effort to modernize payments and liquidity management for large enterprises. According to Manish Kohli, HSBC’s Global Head of Payments Solutions, the Tokenized Deposit Service allows clients to transfer funds instantly—domestically and internationally—24 hours a day. This always-on capability helps companies manage cash flow more efficiently across different time zones and markets.
HSBC already operates tokenized deposit platforms in Hong Kong, Singapore, the United Kingdom, and Luxembourg. These systems handle major global currencies such as the euro, US dollar, pound sterling, Hong Kong dollar, and Singapore dollar. The bank’s upcoming UAE launch will add the dirham to its growing list of supported currencies.
This expansion reflects a broader industry trend, as major banks—including Deutsche Bank, Citigroup, and Banco Santander—invest in digital asset infrastructure to enhance payment speed and efficiency. The shift comes as US regulators move toward clearer guidance on digital currencies and stablecoins through initiatives like the Genius Act.
Unlike stablecoins, which are pegged to fiat currencies and backed by external assets, tokenized deposits are issued directly by regulated banks and represent claims on existing deposits. They can also accrue interest, offering an additional incentive for organizations managing large balances.
Looking ahead, HSBC plans to integrate advanced features such as programmable payments and AI-powered treasury tools, designed to give businesses more flexibility and precision in managing liquidity and financial risk.
While blockchain adoption in traditional finance remains limited compared to overall banking volumes, HSBC’s scale—processing around $500 trillion in electronic payments annually—positions it as a major player capable of driving real-world change. The bank is also exploring opportunities to support stablecoin issuers with reserve management and settlement services, and it has not ruled out developing its own stablecoin pending regulatory developments.
