Ant International is HSBC’s first client for tokenized deposit transactions
Ant International has expanded its collaboration with HSBC to strengthen real-time treasury management capabilities in the Middle East, marking another milestone in the growing adoption of tokenized deposits for cross-border payments and liquidity management. The move comes as banks, corporates and regulators increasingly explore blockchain-based money rails that can deliver instant settlement while remaining within the regulated banking system.
Under the expanded partnership, Ant International successfully completed pilot transactions using HSBC’s Tokenized Deposit Service (TDS), becoming HSBC’s first client in the Middle East to utilize the solution. The initiative demonstrates how regulated commercial bank money can be Tokenized and moved across payment networks in real time while maintaining the characteristics of traditional bank deposits.
The pilot involved two payment corridors connecting the UAE with Asia. The first saw real-time Tokenized deposit transfers denominated in UAE dirhams within the UAE, while the second enabled U.S. dollar-denominated cross-border payments initiated from the UAE to markets including Hong Kong and Singapore.
The transactions were initiated through WhaleRTP, Ant International’s proprietary blockchain-based treasury platform, and settled through HSBC’s TDS infrastructure. The transaction workflow was jointly designed by the two companies.
For Ant International, the partnership forms part of a broader strategy to develop global real-time treasury capabilities. The company already utilizes blockchain and Tokenized deposit technologies across major financial centers including Hong Kong, Singapore, Europe and the United States, while WhaleRTP supports transfers in more than 17 currencies through a network of over 20 global banking partners.
“This marks an important milestone in our journey towards achieving real-time treasury management across the globe,” said Kelvin Li, General Manager of Platform Tech and Senior Vice President at Ant International. He added that the company aims to establish a global treasury hub in the Middle East to support its expanding international operations.
Kyle Boag, Regional Head of Global Payments Solutions at HSBC MENAT, noted that Tokenized deposit interoperability is helping address practical treasury challenges such as moving liquidity across markets and improving cash visibility while leveraging existing banking infrastructure.
UAE at the Center of a Growing Tokenized Deposit Ecosystem
The Ant International deployment follows a series of major Tokenized deposit milestones published by LARA on the Block, highlighting the rapid evolution of the sector from pilot programs into operational banking infrastructure.
Earlier this year, HSBC formally introduced its Tokenized Deposit Service in the UAE, enabling eligible corporate clients to move liquidity 24/7 across domestic and international accounts using blockchain infrastructure. At the time, the bank described the UAE as a strategic market due to its advanced regulatory environment and growing demand for digital treasury solutions.
Since then, momentum has accelerated. In August, HSBC and Standard Chartered completed the first live cross-border interbank Tokenized deposit transaction on Swift’s blockchain-based ledger, demonstrating interoperability between separate Tokenized deposit networks while preserving existing banking oversight and regulatory controls.
More recently, UAE-based Mashreq Bank executed a live tokenized deposit transaction with Citi through Swift’s blockchain infrastructure. The initiative was designed to improve liquidity efficiency, payment availability and treasury management for clients operating across multiple jurisdictions. Prior to Mashreq’s participation, First Abu Dhabi Bank (FAB) also completed live transactions through Swift’s Tokenized deposit ecosystem.
Additional momentum is emerging from the region’s banking sector. In September, Commercial Bank of Dubai became the first non-European institution to join the Commercial Bank Money Token (CBMT) initiative, which aims to enable tokenized commercial bank money for cross-border payments, treasury operations, trade finance and working capital optimization across the Europe-Gulf corridor.
Why Banks Are Betting on Tokenized Deposits
The latest developments reinforce a growing narrative across the financial industry that Tokenized deposits could become one of the dominant forms of institutional digital money.
In a recent interview published by UAE Fintech Vibes, industry leaders discussed the future of Tokenized deposits, stablecoins and central bank digital currencies (CBDCs). Adam Popat of SettleMint argued that tokenized deposits possess a structural advantage because they are a natural extension of how banks already create and manage money on their balance sheets. Rather than introducing a separate monetary system, tokenized deposits digitize existing commercial bank money while preserving regulatory oversight and customer protections.
The interview also highlighted that different forms of digital money are likely to coexist rather than compete directly. Soham Jethani of Septten Advisors noted that Tokenized deposits, stablecoins and CBDCs are designed to serve different functions across the financial ecosystem, while Andrew Forson of Valour emphasized the continuing importance of stablecoins in global payments and cross-border transactions.
This perspective aligns closely with HSBC’s own strategy. Speaking earlier this year, HSBC’s digital asset leadership described Tokenized deposits as a way to provide clients with the benefits of digital money, including real-time liquidity and around-the-clock availability, while retaining the safety, compliance and balance-sheet characteristics of traditional bank deposits.
From Experimentation to Scale
What distinguishes tokenized deposits from many earlier blockchain initiatives is the growing evidence of real transaction volume.
In August, Standard Chartered CEO Bill Winters revealed that the bank’s Tokenized deposit business had reached approximately $11 billion in monthly run-rate volume, driven by cross-border settlement activity and multi currency treasury use cases. The figure represents one of the clearest indications yet that institutional demand for Tokenized bank money is moving into meaningful production environments.
Industry forecasts point to further growth. Research from Kearney identified Tokenized bank deposits as one of the largest tokenization opportunities in the Gulf, alongside private markets and investment funds. The consultancy noted that banks across the UAE, Saudi Arabia and Qatar are increasingly exploring Tokenized deposits as a regulated alternative to stablecoins for treasury management and settlement.
Meanwhile, infrastructure development continues to accelerate. Last month, ADI Foundation and DCM Corp announced a partnership to help banks across MENA and Sub-Saharan Africa issue, manage and settle Tokenized deposits without replacing existing core banking systems, further lowering barriers to institutional adoption.
Taken together, the initiatives by Ant International, HSBC, Standard Chartered, Citi, Mashreq, Commercial Bank of Dubai and other market participants suggest that Tokenized deposits are rapidly moving beyond proof-of-concept experimentation and becoming an increasingly important component of global treasury infrastructure. As corporates seek instantaneous liquidity management and always-on settlement capabilities, the UAE is emerging as one of the world’s most important hubs for the next generation of regulated digital money.
