Global Digital Development Research Report Volume 3, Issue 21 (2025/5/19-2025/5/25)
This issue introduces HSBC's blockchain settlement-related services based on public information for reference.
On May 22, 2025, HSBC launched its first token-based corporate treasury management solution in Hong Kong, which is a local blockchain settlement service. HSBC plans to expand to Asian and European markets in the second half of this year, currently only available in Hong Kong.
I. Service Background and Launch
In recent years, blockchain technology has been continuously explored and expanded in the financial field. Tokenization, as an emerging form of digital assets, has gradually gained attention. HSBC follows this trend by launching tokenized deposit services in Hong Kong, aiming to provide enterprises with more efficient and convenient fund management and payment settlement solutions to enhance their competitiveness in the digital economy era.
The service launch also benefits from the Hong Kong Monetary Authority's active support and promotion of financial technology, as well as Hong Kong's excellent environment and infrastructure for financial innovation as an international financial center.
II. Service Principle and Functions
HSBC's tokenized deposits are based on blockchain technology, converting enterprises' Hong Kong dollar or US dollar deposits into digital tokens that can be traded on the blockchain. These tokens represent the actual deposits of enterprises in HSBC, with the same asset value and rights as traditional deposits.
These tokens can be transferred and paid in real-time between wallets held by different companies under the enterprise's name, without the limitations of traditional time and space factors, achieving 24/7 operation and significantly improving enterprise fund liquidity and management efficiency.
III. Service Advantages
Improving Fund Management Efficiency.Enterprises can allocate funds more quickly, achieving instant transfers between different accounts, reducing fund transit time, and improving fund utilization efficiency, helping enterprises better seize investment and business opportunities.
Enhancing Payment Settlement Flexibility and Convenience.Through tokenized transactions on the blockchain, enterprises can break through the time and geographical restrictions of traditional payment systems, making payments and settlements anytime and anywhere, especially suitable for enterprises with frequent cross-border businesses, effectively reducing cross-border payment costs and complexity.
Increasing Transaction Transparency and Security.The distributed ledger characteristics of blockchain technology ensure that all transaction records are completely and immutably recorded on the chain. Enterprises can query and trace fund flows at any time, enhancing transaction transparency and auditability. Meanwhile, blockchain's encryption technology and consensus mechanisms provide higher security guarantees for transactions, reducing data leakage and fraud risks.
Supporting Integration with Other Digital Assets and Blockchain Applications.Tokenized deposits, as a form of digital assets, can easily interact and integrate with other digital assets and blockchain-based financial applications, creating more innovative business models and value growth opportunities for enterprises. For example, enterprises can combine tokenized deposits with other digitalized financial products to achieve asset diversification, or participate in blockchain-based supply chain finance and cross-border trade financing applications to expand business boundaries.
IV. Application Scenarios and Cases
Internal Corporate Fund Allocation.Enterprise groups can use HSBC's tokenized deposit service to quickly and efficiently allocate funds between different subsidiaries or branches, achieving centralized fund management and optimal allocation. For instance, a multinational enterprise group can open a tokenized deposit account at HSBC in Hong Kong, then use the blockchain network to collect or distribute funds from its subsidiaries in different countries and regions in real-time, improving fund utilization and efficiency.
Cross-border Trade Settlement.In cross-border trade, import and export enterprises can use tokenized deposits for payment and settlement, accelerating transaction speed and reducing settlement risks. When a cross-border transaction is reached, the buyer enterprise can transfer the corresponding amount of tokenized deposits to the seller enterprise, with both parties able to confirm fund receipt and payment in real-time, without relying on traditional bank wire transfer settlement methods, significantly shortening the transaction cycle.
Ant International's Case.Ant International became the first enterprise customer to adopt HSBC's new tokenized deposit service in Hong Kong, converting US dollar deposits into digital tokens on HSBC's distributed ledger system and completing its first intra-group fund transfer. This marks an important step in Hong Kong's promotion of blockchain and traditional finance integration and demonstrates the service's application value and potential in actual corporate operations.
V. Similar Services by Banks in Other Regions
As of May 2025, in addition to HSBC, the following banks have launched or plan similar tokenized deposit services:
Under the coordination of the Swiss Banking Association,UBS and Swiss Banque Privéeand twelve other banks have introduced a tokenized Swiss franc project.
Citibanklaunched "Citi Token Services" in April 2025, providing tokenized deposit and smart contract services for institutional clients, already used to demonstrate a digital solution with the same purpose as bank guarantees and letters of credit.Wells Fargo and JPMorgan Chaseare also actively exploring tokenized deposit applications. After running the JPM Coin system since 2019, JPMorgan Chase is now exploring using tokenized deposits to accelerate cross-border payments and settlements.
In Korea,Hana Bank and Woori Bankare researching tokenized deposit-related businesses.
In April 2025, the European Commission passed the 'emarket infrastructures Act', requiring that from 2026, systemically important payment systems (SIPS) in the EU will gradually replace existing settlement currencies in large-value payment systems with central bank digital currencies (CBDC) and tokenized deposits.Banque de France and the German Federal Bankand other European central banks will build financial ecosystems based on CBDC and commercial banks' tokenized deposits.
VI. Impact and Significance for the Financial Industry
Driving Banking Business Innovation.HSBC's tokenized deposit service provides a new business model and customer service method for banks, helping them expand business areas, increase market share, and competitiveness. It also encourages other banks to accelerate research and exploration of blockchain technology and tokenized business, promoting digital transformation and innovative development in the entire banking industry.
Promoting Deep Integration of Finance and Technology.The successful launch of this service is the result of close collaboration between financial institutions and tech companies, demonstrating the deep application and value creation of blockchain technology in traditional finance. In the future, as technology continues to advance and improve, the integration of finance and technology will become more profound, bringing more innovative products and services to the financial industry and meeting customers' increasingly diverse and personalized needs.
Exploring Regulatory Frameworks for Digital Currencies and Financial Technology.The emergence of tokenized deposit services also brings new challenges and topics to financial regulation, prompting regulatory bodies to strengthen research and policy-making for digital currencies, blockchain technology, and related financial innovations. This helps establish regulatory frameworks and rule systems that adapt to financial technology development, ensuring financial market stability and protecting consumers' legitimate rights and interests. (Images in the article generated by Doubao)
