In September, the service completed its first USD cross-border transaction between Hong Kong and Singapore, to optimise treasury management for Ant International, the solution’s pioneer customer.
The service addresses the growing demand for instant, cross-border settlement by providing an always on, blockchain-based platform, whilst supporting the rise of digital money and meeting clients’ evolving needs.
Building upon the successful rollout of the TDS for domestic payments in Hong Kong and Singapore earlier this year, the service has also been extended to the UK and Luxemburg markets, supporting domestic payments in additional currencies such as GBP, EUR and USD, with plans to scale this service across HSBC’s key markets.
Manish Kohli, Head of Global Payments Solutions at HSBC said:
“Tokenised deposits represent a major step forward in the future of transaction banking and open new opportunities for our clients. By combining real-time liquidity with programmability and secure settlement through blockchain, we can help clients better manage their liquidity, streamline their operations and future-proof their treasury functions in a rapidly evolving financial landscape, with the benefits of emerging forms of digital money and its associated technology.”
Kelvin Li, General Manager of Platform Tech at Ant International said:
“This milestone marks the next step in our joint innovation with HSBC on tokenised deposits. We believe tokenisation is key to enabling more efficient, cost-effective and trusted global transactions, and we will continue working with HSBC to make cross-border payments seamless for businesses of all sizes.”
Using HSBC’s Distributed Ledger Technology (DLT), traditional fiat deposits are represented by digital tokens, allowing cash movements to be customised and executed instantly from clients’ own systems. By removing cut-off times and time-zone barriers, the service integrates seamlessly with existing treasury operations and corporate systems, supporting efficient treasury operations and effective cash flow management.
TDS will be able to support programmability, where conditional payments can be embedded in the transfer of TDS, and settlement of tokenised assets, which allows for atomic and more efficient settlement.
The expansion of TDS builds upon HSBC’s work integrating with clients’ enterprise DLT-based systems in the United States, Singapore, Hong Kong, amongst others enabling seamless and efficient payment initiation from our clients to their partners. TDS and its connectivity with enterprise DLT networks provide a strong foundation for HSBC’s next generation emerging payment infrastructure for blockchain.
