HSBC Holdings Plc will launch its Tokenised Deposit Service for corporate clients in the U.S. and UAE in the first half of 2026. This service allows companies to make instant domestic and international money transfers, operating outside of traditional banking hours.

This capability significantly enhances liquidity management for multinational corporations across various time zones.

HSBC’s expansion plan for tokenised services 

HSBC’s tokenised service already operates in Hong Kong, Singapore, the United Kingdom, and Luxembourg, processing transactions in euros, pounds, US dollars, Hong Kong dollars and Singapore dollars. The addition of UAE dirhams will coincide with the Middle Eastern expansion, positioning the bank in a region increasingly establishing itself as a digital asset hub.

The timing follows the passage of the Genius Act in the United States, which establishes regulatory parameters for stablecoins. This legislation creates clearer operational boundaries for digital asset innovation within traditional banking frameworks.

Apart from HSBC, Deutsche Bank AG, Citigroup Inc., and Banco Santander SA are also actively exploring similar technologies to enhance payment efficiency.

“The topic of tokenisation, stablecoins, digital money and digital currencies has obviously gathered so much momentum. We are making big bets in this space,” stated Manish Kohli, HSBC’s global head of payments solutions, as per a Bloomberg article.

Deposit tokens vs. stablecoins

Deposit tokens function as digital instruments issued by lenders representing claims on existing deposits, effectively serving as tokenised versions of funds already held in conventional banking accounts. 

Unlike traditional wire transfers that rely on established payment networks and settle over several business days, these tokens enable near-instantaneous settlement at any time.

This differs significantly from stablecoins, which typically maintain value through backing with high-quality liquid assets such as government securities. While both technologies enable 24/7 transfers, deposit tokens operate within established banking infrastructure and can generate interest. 

This creates a value proposition for corporate clients with substantial cash reserves who can now maintain liquidity while earning returns.

The distinction is important for corporate treasurers managing billions in liquidity. 

Traditional systems force a choice between accessibility and yield – funds must either remain liquid for immediate use or be locked away to generate returns. Tokenised deposits eliminate this problem by allowing access and yield while maintaining the security and regulations of traditional banking.

Building on this foundation, HSBC plans to expand the use of tokenised deposits. This will include new features like programmable payments and automated treasury systems.

Can tokenised deposits become table stakes?

Despite these strategic advantages, context matters in assessing the current state of adoption. The banking industry has experimented with blockchain for over a decade, yet only a limited number of projects have achieved operational status. HSBC processes approximately $500 trillion in conventional electronic payments annually, but the same is not the case with tokenised transaction volumes.

This scale disparity highlights an important reality: tokenised deposits remain a nascent component of the global financial infrastructure, existing alongside rather than replacing traditional systems, at least for now. 

Tokenised deposits will likely follow an evolutionary rather than revolutionary path. As regulations mature and integration challenges are addressed, adoption will accelerate, particularly among multinationals seeking enhanced treasury efficiency. It is possible that in the coming years, tokenised deposits may become “table stakes” for global banks, creating a foundation for broader institutional adoption of blockchain-based financial services.

For corporate treasurers, the question is not whether to engage with these technologies, but how to integrate them effectively into existing financial infrastructures.