HSBC Rolls Out Tokenized Deposits in US and UAE by 2026

HSBC Rolls Out Tokenized Deposit Service in US and UAE by 2026

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 20, 2025

Key Takeaways

HSBC will launch its blockchain-based Tokenized Deposit Service in the US and UAE by mid-2026 for business clients;
The service turns traditional deposits into digital tokens, enabling instant, round-the-clock transfers;
HSBC plans to use tokenized deposits for automated treasury management and programmable payments.

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HSBC plans to launch a new digital payment system that uses blockchain to represent traditional bank deposits.

The bank expects to make this service available to business clients in the United States and the United Arab Emirates in the first half of 2026, according to a report by Bloomberg.

The system, known as the Tokenized Deposit Service (TDS), allows companies to transfer money both domestically and internationally within seconds. It works by turning regular deposits into digital tokens that exist on a secure blockchain network.

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According to Manish Kohli, HSBC’s global head of payments solutions:

The topic of tokenization, stablecoins, digital money and digital currencies has obviously gathered so much momentum. We are making big bets in this space.

HSBC’s approach differs from stablecoins, as deposit tokens are created directly by a regulated bank and backed by its own balance sheet.

Beyond faster payments, the bank is exploring how tokenized deposits can help automate treasury operations. Kohli mentioned that many large companies are looking to modernize their cash and liquidity management.

HSBC aims to use these tokenized deposits in programmable payment systems and "autonomous treasuries", where automation and artificial intelligence (AI) assist in managing funds.

HSBC has expanded the offering to other regions, including Singapore, the United Kingdom, and Luxembourg.

UBS recently partnered with Ant International to test a new approach for cross-border money transfers using blockchain technology. What did the companies say about the partnership? Read the full story.