Global banking giant HSBC is preparing to expand its tokenised deposit services to the United States and the United Arab Emirates in the first half of 2026. The move signals the bank’s growing commitment to blockchain-based deposit technology as major financial institutions race to innovate in digital finance.
HSBC Accelerates Tokenisation Strategy
HSBC’s Tokenised Deposit Service (TDS) allows corporate clients to send funds instantly across borders at any time. Manish Kohli, global head of payment solutions at HSBC, said the demand for blockchain-powered financial services is rising sharply as companies worldwide rethink their treasury and liquidity systems.
Kohli emphasised that momentum around digital money, tokenisation and programmable payments is driving banks to innovate faster. He added that HSBC is making “big bets” in this space, reflecting growing corporate interest in automation and enhanced treasury tools.
How Tokenised Deposits Differ from Stablecoins
Tokenised deposits represent traditional bank deposits in digital form, issued on a blockchain by licensed banks. They offer real-time transfers as well as programmability for advanced use cases.
Stablecoins versus tokenized deposits: Source: Fireblocks
Unlike stablecoins, which are backed by reserves such as government securities and sit outside standard banking balance sheets, tokenised deposits are created directly from a bank’s own balance sheet. They also allow banks to offer interest, a feature barred for many stablecoin issuers including Circle.
This distinction is important for large corporations seeking predictable regulatory oversight and integrated banking services for high-value payments.
Growing Corporate Interest in Automated Treasury Systems
HSBC expects tokenised deposits to unlock new capabilities such as autonomous treasury operations that use artificial intelligence to manage liquidity and cash positions in real time. Kohli noted that nearly all large companies engaging with HSBC are exploring treasury transformation to enhance efficiency and resilience.
The bank’s move follows similar developments at JPMorgan. On Nov 12, JPMorgan introduced JPM Coin, a blockchain-based deposit token representing dollar deposits. The company positioned its token as a safer, more regulated alternative to traditional stablecoins. Its blockchain head Naveen Mallela argued that deposit tokens operate seamlessly within established banking frameworks.
Expansion Follows Successful Rollout in Asia and Europe
HSBC first launched its tokenised deposit service in Hong Kong in May, with Ant International becoming the initial client. The bank has since extended the service to Singapore, the United Kingdom and Luxembourg. The upcoming expansion to the US and UAE marks the bank’s most ambitious growth phase yet.
Source: Bloomberg Intelligence
Although HSBC is prioritising tokenised deposits, the bank has not dismissed the idea of issuing its own stablecoin in the future. Kohli said the possibility remains under review but noted that clearer global legal frameworks would be required before progressing.
Outlook for 2026 and Beyond
HSBC’s push into tokenised deposits highlights the growing divergence between regulated banks and private stablecoin issuers. As corporations demand faster, programmable and more secure financial tools, major banks are positioning deposit tokens as the next stage of digital finance infrastructure.
The coming years are likely to see increased competition among global banks seeking to reshape cross-border payments and treasury services using blockchain-based solutions.
