HSBC Holdings Plc will offer tokenized deposits to corporate clients in the United States and the United Arab Emirates in the first half of 2026, according to a report from Bloomberg. This means clients can send money locally and across borders in seconds, at any time. Manish Kohli, HSBC’s global head of payments solutions, said the system will help companies manage their cash better.
“The topic of tokenization, stablecoins, digital money and digital currencies has obviously gathered so much momentum,” Kohli said. “We are making big bets in this space.” HSBC already offers tokenized deposits in Hong Kong, Singapore, the United Kingdom and Luxembourg.
In addition, clients can send money in euros, pounds, US dollars, Hong Kong dollars, and Singapore dollars. Moreover, when it launches in the UAE, the service will include dirhams.
Deposit tokens are digital forms of money that banks issue from the money already in accounts. Unlike stablecoins, they can pay interest and are created within the banking system. HSBC says these tokens can also be used for programmable payments.
They may even help companies use automation and artificial intelligence to manage cash and liquidity risks. Kohli explained that “nearly every large company that we have a conversation with, we are seeing a big theme around treasury transformation.”
Other banks are exploring tokenized deposits too. For example, JPMorgan launched JPM Coin, a US-dollar deposit token. Bank of New York Mellon, Deutsche Bank, Citigroup and Banco Santander are also experimenting with similar services.
Meanwhile, HSBC is also studying stablecoins. Kohli said the bank is talking with some stablecoin issuers to provide reserve management and settlement services. He added that issuing a stablecoin is possible in the future if the legal framework becomes clearer.
HSBC has processed about $500 trillion in electronic payments each year. The bank has not shared volumes for tokenized deposits yet but plans to expand the service carefully.
That said, the goal is to help companies move money faster, manage cash better, and keep up with digital banking trends.
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