HSBC to launch deposit token remittance service in first half of next year…for U.S. and UAE customers

HSBC plans to offer a deposit token-based remittance service to customers in the United States and the United Arab Emirates (UAE) in the first half of next year. As major global banks begin to adopt tokenized payment infrastructure in earnest, traditional financial institutions are expanding their use of related technologies.

According to Bloomberg on the 18th (local time), Manish Kohli, head of HSBC Global Payment Solutions, explained that the deposit token service allows customers to process domestic and international remittances in seconds, 24 hours a day. Deposit tokens are structured by issuing existing deposits as blockchain-based digital tokens, and are considered a technology that can significantly increase settlement efficiency and payment speed.

HSBC expects that the launch of this service will shorten international payment processing times and reduce the costs of overseas remittances. Currently, global financial institutions are adopting deposit tokens and the establishment of tokenized payment networks as leading strategies and are increasing pilot implementations.