HSBC to Extend Tokenized Deposit Service to US and UAE in 2025 Amid Growing Blockchain Adoption
HSBC Holdings Plc is preparing to expand its tokenized deposit service to corporate clients in the United States and the United Arab Emirates in the first half of 2025. The move marks another major step in the bank’s push to bring blockchain technology deeper into mainstream finance and modernize how global payments flow.
Manish Kohli, HSBC’s global head of payment solutions, said the new system will offer near-instantaneous fund transfers, available around the clock. By eliminating traditional banking cut-off times, he noted, the service is expected to bring real improvements in cash management for multinational companies.
“Tokenization, stablecoins, digital money, and cryptocurrencies are gaining significant momentum, and we are very invested in this space,” Kohli said, reflecting the bank’s growing focus on digital finance.
Expansion Following Successful Initial Rollout
HSBC has already introduced its tokenized deposit service in Hong Kong, Singapore, the UK, and Luxembourg, where it processes payments across major global currencies, including euros, British pounds, US dollars, Hong Kong dollars, and Singapore dollars. Next year, the bank will add the UAE dirham, strengthening its footprint in the Middle East and broadening access for corporate clients operating across global markets.
Tokenized Deposits vs. Stablecoins
Tokenized deposits act as a digital claim on real funds that customers already hold with the bank. They serve as a tokenized version of traditional balances—fully housed within the regulated banking system. Unlike stablecoins, which rely on external reserves such as government bonds and are pegged to fiat currencies, tokenized deposits stay under direct bank oversight and may even earn interest. This added stability makes them attractive to companies handling large-scale liquidity.
Industry-Wide Trend
HSBC’s expansion reflects a global push within the financial sector. Institutions like Deutsche Bank, Citigroup, and Banco Santander SA are also investing in digital assets as they seek faster, more secure, and more efficient cross-border payment solutions. In the US, legislative developments such as the GENIO Act are helping shape clear regulations for stablecoins, accelerating broader blockchain adoption across the industry.
Future Plans
Looking ahead, HSBC plans to upgrade its tokenized deposit service with programmable payments and autonomous vaults. These enhancements will use automation and artificial intelligence to streamline treasury operations, improve liquidity planning, and reduce operational friction for large enterprises.
“At virtually every major firm we work with, we see a clear focus on restructuring the treasury,” Kohli said, highlighting the demand for smarter, tech-driven financial tools.
Broader Adoption of Blockchain Technology in Finance
Banks have been experimenting with blockchain technology for more than a decade, but only a handful of projects have reached full-scale implementation. Still, momentum is growing. Major firms like JPMorgan Chase & Co. and Bank of New York Mellon have launched their own tokenized deposit platforms, signaling a shift in how traditional financial institutions view digital infrastructure.
HSBC processes around $500 trillion in electronic payments each year, making it one of the largest players in global transaction banking. Although the bank has not yet shared usage numbers for its tokenized deposit service, its expansion timeline demonstrates a firm commitment to this emerging technology.
Exploring Stablecoins
HSBC is also exploring deeper opportunities within the stablecoin ecosystem. The bank is in discussions with several issuers as it evaluates the potential for settlement services and reserve management solutions.
“We will continue to evaluate this option, but there are some things that need to be in place first, including greater clarity in the legal framework,” Kohli said. He added that HSBC may eventually consider issuing its own stablecoin, either independently or in partnership with other major banking institutions.
