HSBC has announced the launch of a new cross-border tokenised deposit service.

The move is part of an expansion of the bank’s existing Tokenised Deposit Service (TDS), a blockchain-based solution that allows corporate clients to move currencies in real-time with instant 24/7 settlement.

Using HSBC’s Distributed Ledger Technology (DLT), traditional fiat deposits are represented by digital tokens, allowing cash movements to be customised and executed instantly from clients’ own systems.

By removing cut-off times and time-zone barriers, the international bank said that the service integrates seamlessly with existing treasury operations and corporate systems, supporting efficient treasury operations and effective cash flow management.

This month the service completed its first USD cross-border transaction between Hong Kong and Singapore in a bid to optimise treasury management for Ant International, the solution’s first customer.

After the successful implementation of TDS for domestic payments in Hong Kong and Singapore earlier this year, the service has also been extended to the UK and Luxemburg markets with additional currencies, including GBP, EUR and USD.

HSBC has plans to scale the service across its key markets.

HSBC said the service addresses the growing demand for instant, cross-border settlement by providing an "always on" blockchain-based platform, whilst supporting the rise of digital money and meeting the evolving needs of its customers.

“Tokenised deposits represent a major step forward in the future of transaction banking and open new opportunities for our clients,” said Manish Kohli, head of global payments solutions at HSBC. “By combining real-time liquidity with programmability and secure settlement through blockchain, we can help clients better manage their liquidity, streamline their operations and future-proof their treasury functions in a rapidly evolving financial landscape, with the benefits of emerging forms of digital money and its associated technology.”

Kelvin Li, general manager of platform tech at Ant International said that the company believes tokenisation is key to enabling "more efficient, cost-effective and trusted global transactions."

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