• Pilot simulated issuing, moving and settling HSBC tokenised deposits on the Canton Network
• Achieved atomic settlement of tokenised deposits simultaneously with other digital assets on Canton-enabled applications
• Demonstrated interoperability by connecting HSBC’s deposit ledger with an external blockchain network

HSBC, through its Global Payments Solutions (GPS) business, has successfully completed a pilot simulating the issuance, transfer and atomic settlement of its Tokenised Deposit Service (TDS) on the Canton Network, a public network for regulated institutions with configurable privacy.

This pilot marks the first time HSBC’s TDS was issued and used on a public blockchain. During the controlled pilot with Canton-enabled applications/digital assets, HSBC simulated the transfer of tokenised deposits and the atomic settlement of tokenised deposits against other digital assets.

The pilot represents a significant milestone in HSBC’s tokenisation journey, demonstrating tokenised deposits can be issued by HSBC and settled atomically with digital assets on the Canton Network. It also highlights the importance of interoperability in scaling digital financial markets and supporting institutional adoption. The pilot further explored how Canton could provide optionality to connect to additional settlement rails, extending delivery-versus-payment settlement across cash and asset legs where appropriate.

Manish Kohli, Head of Global Payments Solutions at HSBC, said: “This work highlights how tokenisation is evolving within the banking sector and the infrastructure needed to support it at scale.

“Our focus is on building secure, interoperable capabilities that enable clients to move money more efficiently across different environments, while maintaining the trust and regulatory standards expected of a global bank.”

Yuval Rooz, CEO of Digital Asset and co-founder of the Canton Network, said: “Tokenized deposits are gaining traction across capital markets, corporate banking, and treasury, and Canton is quickly becoming a primary network for deployment, enabling tokenized deposits to move seamlessly across institutions and applications while maintaining privacy, control and interoperability.”

The announcement reflects HSBC’s ongoing exploration of how tokenised deposits could evolve to enable greater interoperability and integration across the digital asset ecosystem. It also builds on the wider rollout of HSBC’s TDS, which enables corporate clients to convert fiat deposits into digital tokens on a 1:1 basis and transfer them instantly on HSBC’s ledger.

HSBC’s TDS supports major currencies including USD, GBP, EUR, HKD and SGD, and is designed to enhance liquidity management through 24/7, real-time settlement and programmable payments.

Source: HSBC