HSBC has accomplished a successful trial of tokenised deposits in intra-group treasury transactions using blockchain technology provided by China’s Ant Group.
The project’s goal is to explore the potential of deposit tokenisation, which allows for continuous, real-time movement of treasury funds between accounts held by corporate clients within the HSBC network.
This trial took place under the regulatory oversight of the Hong Kong Monetary Authority’s Fintech Supervisory Sandbox and covered the issuance, transfer, and redemption of deposit tokens.
During the testing phase, HSBC was connected to the blockchain platform developed by Ant Group, which enables payments across global treasury centres and supports various major currencies, including HKD, CNY, USD, GBP, and EUR.
Vincent Lau, Global Head of Emerging Payments at HSBC, commented, “The test showcases the cutting-edge banking capabilities available in Hong Kong as a corporate treasury hub. At HSBC, we will continue to leverage tokenised deposits and other financial innovations to streamline and optimize treasury management for our clients.”
HSBC has previously participated in various successful Central Bank Digital Currency (CBDC) pilots, including Project mBridge, which employed CBDCs for cross-border wholesale transactions. It has also explored the feasibility of an interoperable digital money platform known as the Regulated Liability Network in the US and UK, in collaboration with other banks.