HSBC tests tokenised deposit-based treasury management tools. The subject will be analysed at Banking 4.0.

HSBC successfully tested the use of tokenized deposits in partnership with Ant Group, aiming to accelerate the development of corporate treasury management, according to The Paypers.

Kelvin Li, Head of Global Fund Platform, International Business Group, Ant Group, said: “Blockchain and Web3 technologies are enabling digitalization of industry collaboration and innovations on value movement, significantly improving the efficiency of liquidity and corporate treasury management. We are excited to join hands with HSBC to build and test this tokenized deposit service, and will explore further opportunities together to accelerate the financial innovations in Hong Kong.”

The concept of Tokenized Deposits will be analyzed at the Banking 4.0 international conference in the panel called „Banking on tokens” by the following experts: Anthony Ralphs – Director Product Management CBDCs at RIPPLE, Bogdan Almasi – CEO & co-founder ASSETO, Felix Crisan – CEO NETOPIA and Nic Balaceanu – Romanian Association of Fintechs, board member.

Tokenized Deposits (TDs) represent an innovative fusion of traditional banking activities and digital innovation. The process of tokenization allows an issuer not only to define the characteristics of a digital asset. but also to define the rules governing how it is transferred. TDs have the potential to streamline cross-border transactions, support atomic settlement of digitized assets, enable programmable payments, interoperate with decentralized applications, and fundamentally improve the end-user experience.

Given the recent decrease in commercial bank deposits, Tokenized Deposits could be seen as a strategic opportunity for banks to provide additional value and retain or attract deposits. More details here.