HSBC to Expand Tokenized Deposit Service to US, UAE Clients in 2025

HSBC extends tokenized money system across borders

The bank's Tokenized Deposit Service lets corporates move funds locally and internationally within seconds, operating round the clock rather than during business hours. Manish Kohli, HSBC's global head of payments solutions, told Bloomberg the system is designed to give large firms more control over liquidity across markets.

The service is already live in Hong Kong, Singapore, the UK, and Luxembourg. It currently settles in euros, British pounds, Hong Kong dollars, and Singapore dollars, with UAE dirhams to be added when the Middle East rollout begins.

Deposit tokens gain ground as banks test digital money rails

Deposit tokens are digital instruments backed by funds already held in the banking system, making them a regulated alternative to stablecoins for companies seeking instant settlement. They can also pay interest, which may appeal to corporates holding large idle balances.

HSBC's expansion comes as banks, including Deutsche Bank, Citi, Santander, JPMorgan, and BNY Mellon, test or launch similar tokenized deposit infrastructure. The push has accelerated since the US GENIUS Act created a clearer legal framework for digital money and stablecoins.

HSBC explores programmable payments, stablecoin services

Kohli said the bank plans to extend tokenized deposits into programmable payment tools and autonomous treasury functions using automation and AI. He noted that treasurers across major companies are now prioritising real-time liquidity management.

HSBC is also in talks with stablecoin issuers about providing reserve management and settlement accounts. The bank has not ruled out issuing its own stablecoin in the future, although Kohli said more precise legal clarity would be required before that becomes viable.