HSBC Successfully Trials Tokenized Deposits Using Ant Group’s Blockchain

HSBC has successfully conducted a trial of tokenized deposits for intra-group treasury transactions using Ant Group’s blockchain technology. This trial was conducted within the framework of the Hong Kong Monetary Authority’s Fintech Supervisory Sandbox and aimed to assess the potential of deposit tokenization in facilitating real-time, continuous treasury fund transfers within HSBC’s corporate accounts.

The trial involved the issuance, transfer, and redemption of deposit tokens through the Ant Group’s blockchain platform, which supports global treasury payments in various currencies. Vincent Lau from HSBC emphasized the advanced banking capabilities demonstrated during this trial in Hong Kong.

In addition to this endeavor, HSBC has actively participated in several successful Central Bank Digital Currency (CBDC) pilots, including Project mBridge and a cross-border CBDC payment orchestration pilot organized by Swift. The bank has also collaborated with other financial institutions to explore an interoperable digital money platform referred to as the regulated liability network.

Earlier in 2023, HSBC introduced cryptocurrency services, offering Bitcoin and Ethereum ETFs listed on the Hong Kong exchange, including the CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF. This foray into cryptocurrency services aligns with the bank’s ongoing interest in leveraging financial innovations, such as tokenized deposits, to enhance treasury management.

The recent successful test with Ant Group could pave the way for further research into how blockchain and tokenization can improve the efficiency of corporate treasury management. As financial institutions continue to explore innovative technologies to enhance efficiency and enable real-time transactions, these trials represent significant progress.