HSBC and Ant Group Test Tokenized Deposits, Expand Cryptocurrency Services in Hong Kong
Summary:
HSBC, the global banking giant, has conducted a successful trial on tokenized deposits, from issue to transfer and redemption, in collaboration with Chinese financial institution, Ant Group. The experiment took place in a sandbox curated by the Hong Kong Monetary Authority, aiming to explore the potential of deposit tokenization in enabling real-time, always-on treasury fund moves between corporate accounts. This move could foster innovations and efficiencies in corporate treasury management. Hong Kong's largest bank, HSBC, also announced it now allows customers to buy and trade Bitcoin and Ethereum ETFs listed on the Hong Kong exchange, marking a significant increase in local users' exposure to cryptocurrencies.
The colossal banking organization, Hong Kong and Shanghai Banking Corporation (HSBC), have carried out experiments on tokenized deposits - exploring each stage from issue to transfer to redemption - with prominent Chinese finance institution, Ant Group, established by mogul Jack Ma. This experiment took place in a sandbox curated by Hong Kong Monetary Authority. The leaders behind the experiment, the banking corporations, endeavored to investigate the potential applications of deposit tokenization as a mode for continuous, instantaneous fund transactions between corporate accounts under HSBC's jurisdiction. Part of the test involved HSBC integrating with Ant Group's blockchain platform, bolstered by Ant Group’s financial collaborators. As per an official announcement reported to Cointelegraph, HSBC disclosed that the test spanned transactions from issuing to transferring and redeeming deposit tokens, asseverating: "This lays the groundwork for further studies into how blockchain and tokenization can augment efficiency and stimulate innovation in corporate financial management.”
Drawing upon Ant Group’s financial collaborators enhances the transaction of treasury funds with boosted turnaround time, cost-effectiveness, and increased transparency. Vincent Lau, the Global Head of Emerging Payments in Global Payments Solutions at HSBC, affirmed the bank's commitment to capitalizing on tokenized deposits and other fiscal innovations in order to streamline and enhance treasury management for their clientele.HSBC has also diligently participated in several central bank digital currency (CBDC) initiatives, including the Swift transnational CBDC initiative known as Project mBridge.
In pertinent news, HSBC debuted its inaugural local cryptocurrency services in June of 2023. In a telling revelation, HSBC, Hong Kong's premier bank, has made the unprecedented move in allowing its patrons to purchase and trade Bitcoin and Ethereum ETFs (Exchange Traded Funds) listed on the Hong Kong exchange, being the first bank in the region to permit such transactions. This decision will significantly extend local users' contact with cryptocurrencies in Hong Kong.
The report advances that HSBC plans to proffer cryptocurrency ETFs listed on the Hong Kong Stock Exchange, among which are the CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and the Samsung Bitcoin Futures Active ETF. HSBC has yet to respond to Cointelegraph’s enquiry for a response.
Published At
11/1/2023 1:18:17 PM
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