HSBC Launches 24/7 Tokenized Transfers as Bank Embraces Blockchain Sandboxes AllinCrypto May 26, 2025
HSBC has announced the formation of a Tokenized Deposit Service allowing for 24/7 transfers of Hong Kong dollars and United States dollars between the bank and clients.
The bank is joining Citi, JPMorgan, and DBS as banks start to discover the benefits of tokenized assets via blockchain sandboxes.
Banks are set to further adopt blockchain and tokenized assets as the GENIUS Act in the US is set to produce a clear adoption framework. Similarly, banks like JPMorgan have also been trialling alternative payment structures.
HSBC Tokenized Deposit Service marks steps towards blockchain adoption
HSBC has announced its Tokenized Deposit Service that allows for the 24/7 transfer of HKD and USD between clients and banks.
The development is part of Hong Kong’s Project Ensemble sandbox, a sandbox for developing interbank settlements by using tokenized money.
International digital payments firm Ant International, the company behind Alipay, is reported as one of HSBC’s clients, utilizing the Tokenized Deposit Service.
From Kelvin Li, General Manager of Platform Tech, Ant International:
HSBC shares our commitment to redefine the future of liquidity management through innovation, technology, and collaboration. We believe that tokenisation is the key to bridging the stability of traditional banking
By implementing and utilizing tokenized money, banks are able to settle cross-border transactions instantly and settle transfers with similar near-instant settlements. There are also hints of automation being involved.
GENIUS Act to open floodgates for institutions into crypto
In the US, Scott Bessent has said publicly that stablecoins may unlock trillions for US treasuries as a digital dollar.
Stablecoins that utilize blockchain technology will enable instant settlements once banks are able to adopt USDC tokens for payments.
Circle’s Payment Network aims to become a SWIFT-like alternative, offering instant cross-border payments via banks for clients by utilizing the USDC stablecoin’s 1:1 USD representation.
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