Hsbc To Bring Tokenized Deposits To Us And Uae As Stablecoin Race...

HSBC is the latest megabank to double down on tokenized deposits versus stablecoins by preparing for new launches in the US and the UAE next year.

Global megabank HSBC is doubling down on tokenization over stablecoins as global banks rush to keep pace in the stablecoin race.

HSBC Holdings will start offering tokenized deposits to its corporate clients in the US and the United Arab Emirates in the first half of 2026, according to a Bloomberg report on Tuesday.

The Tokenized Deposit Service (TDS) by HSBC enables clients to send money domestically and abroad in seconds around the clock, said 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,” Kohli said.

Tokenized deposits are digital representations of bank deposits issued on a blockchain by regulated banks, allowing for instant 24/7 transfers and programmable payments.

Unlike stablecoins, which are often linked to fiat currencies like the US dollar and backed by assets like government debt, deposit tokens are created using the issuer’s balance sheet.

While stablecoin issuers like Circle are not allowed to pay yields on stablecoin holdings by users, tokenized deposits offer interest payouts among their key features.

According to Kohli, HSBC plans to expand the use cases of tokenized deposits in programmable payments and autonomous treasuries, or systems that deploy automation and AI to independently manage cash and liquidity risk.

“Nearly every large company that we have a conversation with, we are seeing a big theme around treasury transformation,” the HSBC executive said.

Source: CoinTelegraph