Global megabank HSBC is increasing its focus on tokenized deposits over stablecoins, preparing new launches in the US and UAE in the first half of 2026. The move comes as major banks compete to adopt blockchain-based payment solutions.
According to a Bloomberg report, HSBC Holdings will offer the Tokenized Deposit Service (TDS) to corporate clients, enabling instant domestic and international transfers at any time. Manish Kohli, HSBC’s global head of payments solutions, said the initiative reflects the growing momentum around tokenization, stablecoins, digital money, and digital currencies.
Tokenized deposits versus stablecoins
Tokenized deposits are digital representations of traditional bank deposits issued on a blockchain by regulated banks. They allow 24/7 instant transfers and programmable payments. Unlike stablecoins which are often pegged to fiat currencies like the US dollar and backed by government debt or other assets deposit tokens are created using the issuer’s own balance sheet.
Key advantages of tokenized deposits include interest payouts, which stablecoins typically cannot offer. HSBC plans to expand use cases for tokenized deposits in programmable payments and autonomous treasuries, systems that leverage automation and AI to independently manage cash and liquidity risk.
Nearly every large company we speak to is focused on treasury transformation, emphasizing that tokenized deposits are gaining traction among corporate clients seeking more efficient cash management solutions.
Global expansion follows Hong Kong debut
The US and UAE launches are the latest step in HSBC’s tokenized deposit rollout, which began in Hong Kong in May, with Ant International becoming the first client to adopt the TDS solution. The offering has since expanded to Singapore, the United Kingdom, and Luxembourg.
The bank’s push into tokenized deposits mirrors similar moves by other global banks. On Nov. 12, JPMorgan introduced the JPM Coin, a deposit token representing US dollar deposits, explicitly positioning it as an alternative to traditional stablecoins. Naveen Mallela, JPMorgan’s blockchain executive, noted that deposit tokens operate fully within regulated banking frameworks.
While HSBC is prioritizing tokenized deposits, the bank has not ruled out issuing a stablecoin in the future.