- HSBC has successfully executed a test using tokenised deposits for intra-group treasury transactions with the help of Ant Group’s blockchain technology.
- The test was conducted under the Hong Kong Monetary Authority’s Fintech Supervisory Sandbox arrangement, showcasing the potential for always-on, real-time treasury fund movement between corporate accounts within the HSBC network.
In an impressive demonstration of blockchain’s potential in financial services, HSBC recently conducted a successful test utilizing tokenised deposits for intra-group treasury transactions. This initiative, supported by the robust blockchain technology from China’s Ant Group, aims to explore and unlock the possibilities of deposit tokenisation for facilitating real-time fund movement between corporate accounts within the HSBC network.
The test, conducted under the stringent parameters of the Hong Kong Monetary Authority’s Fintech Supervisory Sandbox arrangement, involved the issuance, transfer, and redemption of deposit tokens. In the course of this experiment, HSBC was seamlessly integrated into Ant Group’s sophisticated blockchain platform, enhancing the capabilities for payments across global treasury centres and supporting a variety of major currencies such as HKD, CNY, USD, GBP, and EUR.
Vincent Lau, HSBC’s Global Head of Emerging Payments and Global Payments Solutions, spoke highly of the test, emphasizing its role in solidifying Hong Kong’s position as a leading corporate treasury hub. He assured that HSBC is keen on continuing its journey of innovation, leveraging tools like tokenised deposits to streamline and optimize treasury management for its diverse clientele.
HSBC’s involvement in blockchain and digital currency innovations is not new. The bank has actively participated in numerous central bank digital currency (CBDC) pilots, including Project mBridge for cross-border wholesale transactions and a CBDC payment orchestration pilot organized by Swift. Moreover, HSBC is exploring the future of digital money through its participation in initiatives like the regulated liability network in the US and UK, aiming to create an interoperable platform for digital currencies.
This latest venture with Ant Group’s blockchain technology not only exemplifies HSBC’s commitment to innovation in financial services but also reinforces the bank’s position as a forward-thinking institution, ready to embrace the benefits of blockchain for enhancing global treasury operations.