HSBC has completed a pilot of tokenised deposits on the Canton Network to demonstrate interoperability between the bank’s internal ledger and an external blockchain environment.

The pilot, conducted by HSBC’s Global Payments Solutions business, simulated the issuance, transfer and atomic settlement of the bank’s Tokenised Deposit Service on the public network.

The Canton Network is a public blockchain network designed for regulated institutions. Launched in 2023 by a consortium of financial services and technology providers, it features configurable privacy that allows transactions on the network to meet regulatory requirements across multiple jurisdictions.

The bank said the pilot marks the first time its tokenised deposits have been issued and used on a public blockchain.

During the controlled test, HSBC simulated the movement of tokenised deposits and their simultaneous settlement alongside other digital assets on Canton‑enabled applications. The bank said the exercise demonstrated how atomic settlement, in which a transaction is completed instantly and simultaneously, could be achieved across multiple asset types, reducing settlement risk and improving efficiency.

The pilot also explored interoperability by connecting HSBC’s deposit ledger with an external blockchain network. HSBC said this capability is critical for scaling tokenised financial markets, enabling digital cash to move across platforms and support delivery‑versus‑payment settlement models.

HSBC’s Tokenised Deposit Service allows corporate clients to convert fiat deposits into digital tokens on a one‑to‑one basis and transfer them in real time using the bank’s infrastructure.

“This work highlights how tokenisation is evolving within the banking sector and the infrastructure needed to support it at scale,” said Manish Kohli, head of global payments solutions at HSBC. “Our focus is on building secure, interoperable capabilities that enable clients to move money more efficiently across different environments, while maintaining the trust and regulatory standards expected of a global bank.”

HSBC said the initiative forms part of its broader strategy to explore tokenised cash and digital asset integration, with the goal of improving liquidity management and enabling real‑time settlement across different financial ecosystems.

HSBC is not the only bank continuing experimentation in digital currency. On 10 April, ClearBank Europe gained Markets in Crypto‑Assets Regulation (MiCA) certification, becoming the first Dutch credit institution to do so.

The day before, six Swiss banks partnered to launch a sandbox testing environment for developing a digital Swiss franc.

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