HSBC successfully completed tokenised deposit pilot on the Canton Network

HSBC, via its Global Payments Solutions (GPS) business, has successfully completed a pilot simulating the issuance, transfer, and atomic settlement of its Tokenised Deposit Service (TDS) on the Canton Network, which is a public blockchain. It is designed for regulated institutions with configurable privacy.

Manish Kohli, Head of Global Payments Solutions at HSBC, said, “This work highlights how tokenisation is evolving within the banking sector and the infrastructure needed to support it at scale.”

“Our focus is on building secure, interoperable capabilities that enable clients to move money more efficiently across different environments, while maintaining the trust and regulatory standards expected of a global bank,” he added.

An overview of the pilot 

This pilot marks the first occasion that HSBC’s TDS was issued and used on a public blockchain. Conducted in a controlled environment with Canton-enabled applications and digital assets, HSBC simulated the transfer of tokenised deposits and their atomic settlement alongside other digital assets.

Key achievements include the issuance, movement, and settlement of HSBC tokenised deposits on the Canton Network. It also includes atomic settlement of tokenised deposits simultaneously with other digital assets on Canton-enabled applications. The last achievement is the demonstration of interoperability by connecting HSBC’s deposit ledger with an external blockchain network.

Yuval Rooz, CEO of Digital Asset and co-founder of the Canton Network, quoted, “Tokenised deposits are gaining traction across capital markets, corporate banking, and treasury, and Canton is quickly becoming a primary network for deployment, enabling tokenised deposits to move seamlessly across institutions and applications while maintaining privacy, control and interoperability.”

The pilot explored how Canton could offer optionality to connect to additional settlement rails, extending delivery-versus-payment settlement across both cash and asset legs where appropriate.

Broader context and future outlook

This announcement shows HSBC’s ongoing efforts to explore how tokenised deposits can evolve to enable greater interoperability and integration within the digital asset ecosystem. It builds on HSBC’s wider rollout of its TDS, which allows corporate clients to convert fiat deposits into digital tokens on a 1:1 basis and transfer them instantly on HSBC’s ledger.

HSBC’s TDS supports major currencies including USD, GBP, EUR, HKD, and SGD. It is designed to enhance liquidity management through 24/7 real-time settlement and programmable payments.