HSBC completes tokenized deposit pilot on Canton Network, supporting real-time settlement in USD, HKD, and other currencies

Foresight News reported, citing Financial IT, that HSBC Global Payment Solutions (GPS) has successfully completed a trial of tokenized deposit services (TDS) on the regulated public blockchain Canton Network. The trial simulated the entire process of issuing, transferring, and atomic settlement of tokenized deposits with other digital assets. This is the first time HSBC TDS has been issued and used on a public blockchain. HSBC TDS supports major currencies such as USD, GBP, EUR, HKD, and SGD, allowing fiat deposits to be converted into digital tokens at a 1:1 ratio with instant transfers across the HSBC ledger, supporting 24/7 real-time settlement and programmable payments.

Manish Kohli, Head of HSBC Global Payment Solutions, stated that this trial showcases the evolution of tokenization in the banking industry and the necessary underlying infrastructure. The company's focus is on building secure and interoperable capabilities so that clients can move funds more efficiently across different environments. Yuval Rooz, co-founder of Canton Network and CEO of Digital Asset, said that tokenized deposits are accelerating adoption in capital markets, corporate banking, and cash management, and that Canton has become one of the primary deployment networks.