Banking group HSBC is expanding access to tokenized deposits for large corporate clients in the United States and the United Arab Emirates.
The Hongkong and Shanghai Banking Corporation (HSBC), one of the world’s largest financial conglomerates, plans to enable major corporate clients in the U.S. and UAE to use its Tokenised Deposit Service (TDS) for working with tokenized deposits in H1 2026.
A tokenized deposit is a form of digital certificate representing a standard bank deposit recorded on a distributed ledger (DLT). It enables nearly instant transfers and liquidity management without traditional limitations of banking systems.
HSBC’s Tokenised Deposit Service (TDS) was launched in May 2025 and tested during cross-border U.S. dollar transactions between Hong Kong and Singapore. The service supports automation and removes constraints related to time zones and traditional operating hours.
According to Manish Kohli, HSBC’s Head of Global Payments Solutions, entering the U.S. and UAE markets gives HSBC access to two key regions with well-developed corporate liquidity and global settlement flows. He also noted that the platform can be integrated into corporate liquidity management systems, enabling instant transfers with programmable execution rules.
Moreover, TDS isn’t intended for retail deposits, only for the corporate segment. Kohli also emphasized that tokenized deposits remain fully regulated instruments since they are bank liabilities and fall under banking regulations on capital, liquidity, and reporting.
HSBC is actively testing settlement mechanisms for tokenized asset transactions within initiatives launched by the Hong Kong Monetary Authority (HKMA), and is also exploring the use of quantum technologies in financial transactions.
