HSBC introduces tokenized deposit service to UAE

HSBC has introduced its Tokenised Deposit Service (TDS) in the UAE to grow the digital money capabilities through the movement of funds in real-time using Blockchain.

As per the announcement, through TDS, eligible clients can transfer funds 24/7, domestically and cross-border, from treasury centers to subsidiaries, instantly and on-chain, improving liquidity management and global commerce.

Mohamed Al Marzooqi, Chief Executive Officer, UAE, HSBC Bank Middle East Limited, said, “This launch marks another significant step in the future of money movement, and the UAE is uniquely positioned to lead this shift. The introduction of tokenized deposits to the UAE is a reflection of the maturity of the local regulatory environment when it comes to digital finance and the genuine demand from corporates operating in and through this market for more capable treasury tools.”

The UAE fiat currency, the Dirham, now joins a network that already supports euros, pound sterling, US dollars, Hong Kong dollars, and Singapore dollars. This has extended TDS’s reach into the Gulf and connecting it to the broader trade and investment flows that run through this market.

Kyle Boag, Regional Head of Global Payments Solutions, HSBC MENAT, explained “The demand for instant, secure, always-on liquidity solutions is only increasing as businesses seek to compete in a globalized and highly digitalized world. Tokenized deposits are a natural extension of our global digital asset strategy into one of the world’s most dynamic financial hubs.”

Using Tokenized deposit services, businesses will have accelerated settlement, 24/7 availability for domestic and cross border transfers, efficient working capital and liquidity management across accounts, and compatibility with existing banking and treasury infrastructure.

It will also offer improved visibility into cash positions to support real-time liquidity decisions while reducing manual processing, enabling straight-through processing to streamline operations.

Tokenized Deposit Service is available to eligible HSBC corporate and institutional clients in the United Arab Emirates, subject to applicable approvals, documentation and onboarding requirements.

In an interview with Asian Banker in May, Lewis Sun, global head of digital currencies, corporate and institutional banking at HSBC, discussed the launch of HSBC’s tokenized deposit service in Singapore, USA, Hong Kong, Europe, United Kingdom and soon in the UAE as its next market.