HSBC to launch tokenized deposits in US and UAE in 2026

Global Megabank HSBC is doubling down on tokenization in StableCoins as global banks rush to keep pace with the Stablecoin race.

HSBC Holdings will begin offering tokenized deposits to its corporate clients in the US and the United Arab Emirates in the first half of 2026, according to a Bloomberg report on Tuesday.

HSBC’s Tokenized Deposit Service (TDS) enables clients to send money domestically and internationally in seconds around the clock, said Manish Kohli, HSBC’s global head of Payment solutions.

“The topic of tokenization, stablecoins, digital currency and digital currency has obviously gathered a lot of momentum. We are making a big bet in this space,” Kohli said.

Tokenized deposits versus StableCoins

Tokenized deposits are digital representations of bank deposits released on a blockchain by regulated banks, allowing instant 24/7 transfers and programmable payments.

Unlike StableCoins, that is often linked to fiat currencies such as the US dollar And backed by assets such as government debt, deposit tokens are created using the issuer’s balance sheet.

While StableCoin issuers like Circle are not allowed to pay dividends on StableCoin holdings Through users, tokenized deposits offer interest payouts among their main features.

According to Kohli, HSBC plans to expand the use cases of tokenized deposits to programmable payments and autonomous wealth, or systems that deploy automation and AI to independently manage cash and liquidity risk.

“Almost every large company we have a conversation with, we see a big theme around Treasury transformation,” the HSBC executive said.

The launch of HSBC StableCoin has not been decided

The product expansion to the US and UAE is the latest by HSBC, following the debut of the offering in Hong Kong in May, with Ant International becoming the first client to use the TDS solution.

The bank has since expanded the offering to several markets, including Singapore, the United Kingdom and Luxembourg.

HSBC’s choice to move forward with tokenized deposits comes amid major banks like JPMorgan doubling down on the technology.

Related: How tradfi banks are moving forward with new StableCoin models

On November 12, JPMorgan released the JPM coina deposit token representing US dollar deposits in the bank. The company opposed token to traditional StableCoins.

While pushing for tokenized deposits, HSBC is not ruling out the potential release of a stablecoin.

“This is something we will continue to review,” Kohli said, adding: “There are a few things that need to happen, which is the legal framework needs to be clearer.”