HSBC plans to expand its tokenized deposit service to the US and UAE markets.

According to Bloomberg, HSBC announced plans to begin offering its Tokenized Deposit Service (TDS) to corporate clients in the US and UAE in the first half of next year, expanding its adoption of blockchain payments. Service Scope: TDS allows corporate clients to complete local and cross-border fund transfers 24/7 within seconds, significantly improving liquidity management efficiency. The service is already available in Hong Kong, Singapore, the UK, and Luxembourg, supporting transactions in Euros, British Pounds, US Dollars, Hong Kong Dollars, and Singapore Dollars. New Currency: As HSBC expands into the Middle East, it will add support for the UAE Dirham next year. Tokenized Deposits vs. Stablecoins: Tokenized deposits are digital notes issued by banks, representing claims on existing deposits, part of the existing banking system, and paying interest. Unlike stablecoins, which are typically issued by non-bank entities and backed by high-quality liquid assets, tokenized deposits are more attractive to corporate clients with substantial cash reserves due to their adherence to traditional regulatory frameworks. Future Outlook: HSBC plans to expand the application of tokenized deposits in programmable payments and autonomous funds management systems (leveraging automation and AI to manage cash and liquidity risk). In addition, HSBC is exploring the stablecoin industry and in talks with several issuers to provide reserve management and settlement account services, but has not ruled out the possibility of issuing its own stablecoin or jointly issuing one with other banks in the future.