HSBC launches its first settlement service using blockchain technology in Hong Kong. It turns regular bank deposits into digital tokens. This means that the company can make money almost immediately.
Lewis Sun, head of global domestic and emerging payments for HSBC Global Payment Solutions, said payments may cost faster than traditional systems.
Token Deposit Plan
According to the report, HSBC’s new token deposit plan allows companies to exchange regular deposits into tokens on the blockchain platform. Companies keep dollars on their bank’s balance sheets, but they can send and receive them like digital coins.
The Sun says this approach can reduce additional costs and delays. It also helps track every payment on the chain, so companies always know where their cash is.
HSBC launches Hong Kong’s first blockchain settlement service
HSBC made its first appearance on a blockchain-based settlement platform using tokenized HKD and USD deposits, while ANT International completed its first transaction.
The service will be expanded in Asia and Europe later this year. pic.twitter.com/wnmmqs7owa
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Pay 24/7
According to HSBC, the service runs 24 hours a day. Corporate customers can send Hong Kong dollars and US dollars between HSBC Hong Kong wallets at any time.
This is a big change compared to standard banking, where it is often suspended overnight or weekends. Real-time transfer means that the treasurer can respond quickly to market transfers or urgent needs.
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Ant International Pilot
Ant International, a branch of Alibaba Group Holdings, was the first customer to test the system. HSBC said it uses Ant’s whale platform to move funds immediately. After that pilot in May, the bank adopted the courses on-site services.
Kelvin Li, general manager of platform technology at Ant International, said Sigkenization is a bridge between traditional banks and blockchain. He added that the project aims to make the Ministry of Finance more transparent and efficient.
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Regulatory support and extension
The launch of HSBC was obtained by the Hong Kong Monetary Authority’s supervisory incubator for distributed ledger technology. The bank is conducting several proof-of-concept trials under HKMA’s tokenization program.
In August, HKMA established a central bank digital currency testing system. Six companies, including HSBC, have begun trying tokenized funds for digital asset transactions.
Hong Kong faucet blockchain
This move pushes Hong Kong to an interbank blockchain settlement. HSBC plans to expand its services to Asian and European markets in the second half of 2025.
The new system could change the way large companies handle cash. They don’t have to wait until opening hours or hit at unexpected expense. Instant information for each payment can provide a clear view of liquidity throughout the day.
But the project also faces challenges. The company must refresh its backcourt so it can interact with the token. Blockchain platforms need to be secure from intrusions or technical failures.
According to the latest ranking of 50 largest European lenders published by S&P Global Market Intelligence, HSBC is the largest bank in Europe.
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