HSBC Completes Tokenized Deposit Service Pilot on Canton Network

HSBC's Global Payment Solutions (GPS) division has successfully completed a pilot for tokenized deposit services (TDS) on the regulated public blockchain, Canton Network. According to Foresight News, the pilot simulated the full process of issuing, transferring, and atomic settlement of tokenized deposits alongside other digital assets. This marks the first issuance and use of HSBC's TDS on a public blockchain. HSBC's TDS supports major currencies including USD, GBP, EUR, HKD, and SGD, allowing fiat deposits to be converted into digital tokens at a 1:1 ratio. These tokens can be instantly transferred on HSBC's ledger, enabling 24/7 real-time settlement and programmable payments. Manish Kohli, head of HSBC Global Payment Solutions, highlighted that the pilot demonstrates the direction of tokenization in banking and the necessary infrastructure. The company's focus is on building secure and interoperable capabilities to allow clients to transfer funds more efficiently across different environments. Yuval Rooz, co-founder of Canton Network and CEO of Digital Asset, noted that tokenized deposits are rapidly being adopted in capital markets, corporate banking, and cash management, with Canton emerging as a key deployment network.