HSBC: Advancing Blockchain for Institutional Payments

HSBC has announced the successful completion of a pilot that simulated the issuance, movement and atomic settlement of tokenised deposits on the Canton Network.

This, the banking giant says, is a significant step forward in its exploration of blockchain interoperability and digital payment innovation.

Through its Global Payments Solutions (GPS) business, HSBC tested how tokenised deposits could interact with other digital assets on Canton-enabled applications, demonstrating seamless connection between HSBC’s deposit ledger and Canton’s public blockchain framework for regulated institutions.

This is the first time HSBC’s Tokenised Deposit Service (TDS) has been issued and used on a public blockchain. 

The pilot achieved atomic settlement – meaning transactions of tokenised deposits and other digital assets were completed simultaneously – ensuring both sides of a trade are executed instantly and securely.

Advancing interoperability in institutional payments

HSBC says that the pilot reinforces a critical step in the evolution of tokenisation by ensuring interoperability between networks and supporting future‑scalable financial ecosystems. 

By demonstrating that tokenised deposits can be issued and settled atomically alongside digital assets, HSBC is signposting how wider institutional adoption of digital market infrastructure could unfold.

Manish Kohli, Head of Global Payments Solutions at HSBC, says: “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.”

Interoperability, HSBC, sits at the core of the pilot’s success, particularly in allowing the bank’s systems to connect with external networks while preserving regulatory compliance and transaction privacy.

Canton Network – co‑founded by Digital Asset – is designed as a privacy‑enabled, interoperable blockchain for regulated institutions, supporting diverse asset classes and applications.

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

The collaboration paints a picture of HSBC’s ongoing exploration and how tokenised deposits could help shape future financial connections between banks, corporates and digital market infrastructures. 

The pilot also highlights how Canton’s framework may support HSBC’s broader vision for optional connectivity across multiple settlement rails – extending delivery‑versus‑payment capability across cash and asset legs.

Paving the way towards the future of digital treasury

The bank’s TDS is already positioned as a practical bridge between traditional and digital finance. 

It allows corporate clients to convert fiat deposits into programmable digital tokens on a one-on-one basis, enhancing liquidity management and enabling instantaneous settlement directly on HSBC’s ledger.

HSBC’s TDS supports major currencies including USD, GBP, EUR, HKD and SGD.

As real‑time settlement and programmable payment capabilities become increasingly vital to global cash management, the pilot’s findings are expected to inform HSBC’s wider efforts to build interoperable infrastructure for institutional‑grade digital finance.