- HSBC and Ant International launch digital fiat service.
- Banking on blockchain technology’s potential.
- Aims at Asia-Europe expansion in 2025.
HSBC Holdings plc has launched Hong Kong’s first blockchain settlement service integrating tokenized deposits, partnering with Ant International. This collaboration sees HSBC pioneering digital fiat treasury flows, initiating the service through an intra-group transaction.
The launch highlights the increasing convergence of traditional banking and blockchain, aiming for enhanced efficiency in treasury activities. This move by HSBC is the first major bank-led blockchain service in Hong Kong, setting a significant industry precedent.
HSBC Holdings plc, a major global bank, has launched a pioneering blockchain-based settlement service in Hong Kong. The service employs tokenized deposits to facilitate treasury management, marking a strategic collaboration with Ant International.
Lewis Sun, HSBC’s Global Head of Payments, emphasizes the importance of regulated tokenization in bridging traditional banking and blockchain. This initiative currently tokenizes Hong Kong dollars and U.S. dollars for digital use.
The service impacts internal corporate treasury flows, allowing real-time transactions. Ant International reports significant on-chain activity, showcasing the digitalization trend in treasury management.
“Tokenised deposits, when supported by regulated financial institutions, can offer a safe and fully compliant approach to improving payments and cash management for [companies]. This service sets a new benchmark for efficiency and innovation in digital money solutions for [companies].”
— Lewis Sun, Global Head of Domestic and Emerging Payments, HSBC
Strategically, HSBC and Ant International aim to expand this service to Asia and Europe by 2025, reflecting growing demand for blockchain solutions in corporate finance.
While the initiative currently focuses on institutional clients, its success could inspire broader blockchain integration in the banking industry.
The partnership underscores a growing trend where financial institutions explore blockchain’s potential for efficient financial services. The proliferation of similar trends by Visa and JPMorgan highlights an industry-wide shift.
