HSBC said its tokenised deposit programme can convert traditional bank deposits into digital tokens on a blockchain platform. As a result, payments through the service have the potential to cost less and take less time than traditional banking systems, according to Lewis Sun, HSBC’s global head of domestic and emerging payments for global payments solutions.
The tokenised deposit infrastructure would enable corporate clients to make real-time Hong Kong and US dollar payments and transfer between HSBC Hong Kong wallets 24 hours a day, HSBC said.
The application was currently limited to use in Hong Kong and would expand to Asian and European markets in the second half of the year, it said.
“Tokenised deposits, when supported by regulated financial institutions, can offer a safe and fully compliant approach to improving payments and cash management for [companies],” Sun said.
“Hong Kong is an international financial centre committed to driving digital money innovation. This service sets a new benchmark for efficiency and innovation in digital money solutions for [companies].”
Ant International, an affiliate of Alibaba Group Holding, owner of the Post, was the first client to complete an instant fund transfer using deposit tokenisation.
