HSBC's Tokenised Deposit Service Launches in Luxembourg
HSBC has launched its Tokenised Deposit Service (TDS) in Luxembourg, allowing businesses to transfer funds instantly between their accounts held with HSBC across several countries. The service operates 24 hours a day, seven days a week, including weekends and outside normal banking hours. This is part of a larger effort by banks to move tokenized deposits between separate infrastructures.
Luxembourg is one of six markets connected to the service, along with Hong Kong, Singapore, the UK, US, and the UAE. The network supports several currencies, including the euro, US dollar, pound sterling, offshore renminbi, and others. Tokenised deposits are created by converting traditional deposits into digital tokens recorded on HSBC's private blockchain.
The service has been tested by 17 banks across six continents, including BNP Paribas, Citi, DBS, Standard Chartered, and UBS. The goal is to combine the availability of blockchain technologies with banking system rules on compliance, control, and risk management.