HSBC Holdings is reportedly preparing to launch blockchain-based bank deposits for its corporate clients in the UAE and the US during the first half of next year.
The bank already provides tokenised deposit services in Hong Kong, Singapore, the UK and Luxembourg, enabling clients to transact in euros, pounds, US dollars, Hong Kong dollars and Singapore dollars.
From next year, HSBC will also support dirham-denominated transactions as part of its broader expansion in the Middle East, according to Manish Kohli, the bank’s global head of payment solutions, who spoke to Bloomberg.
The solution is designed to let companies transfer funds within seconds at any time, removing the constraints of traditional working hours. Kohli noted that the offering would help businesses optimise liquidity management.
A number of banks, including Deutsche Bank, Citigroup and Banco Santander, are also exploring how digital assets can accelerate payment processes, the report added.
HSBC, which processes around $500 trillion in electronic payments annually, has yet to reveal the transaction volume of its tokenised deposit platform, Bloomberg reported.
The bank is reviewing the stablecoin sector and is engaging with several issuers regarding reserve management and settlement account services.
Kohli said HSBC may explore issuing its own stablecoin, potentially in collaboration with other banks.
