HSBC Expands Tokenized Deposit Service to US Market
Tokenized deposits represent companies' fiat deposits as digital tokens on a distributed ledger, but remain bank deposits rather than stablecoins. HSBC uses the technology to help multinational companies manage liquidity around the clock and reduce delays caused by batch settlement, time-zone differences and traditional cross-border payments. The service is an important indicator of banks' progress in commercializing on-chain payments.
HSBC announced on April 13, 2026, that its Tokenized Deposit Service (TDS) had formally expanded to the United States, allowing eligible corporate and institutional clients to transfer funds instantly between domestic and cross-border accounts. The service was already available in Hong Kong, Singapore, Luxembourg and the United Kingdom, bringing its reach to five markets with the addition of the United States. HSBC did not disclose transaction values or the scale of the service.
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The history behind this eventHSBC Successfully Pilots Tokenized Deposit Service on Canton Public Blockchain
Tokenized deposits are a digital form of bank liabilities, allowing companies' fiat deposits to be converted one-for-one into on-chain tokens for real-time payments and asset settlement. HSBC first launched its Tokenised Deposit Service, or TDS, in May 2025. Its move to the privacy-enabled, interoperable Canton Network marks a shift in bank-grade digital money from private ledgers to public blockchain applications.
HSBC said on April 13, 2026, that it had completed a controlled pilot, its first simulation of TDS issuance and transfers on Canton Network, as well as simultaneous atomic settlement with other digital assets. The service supports the U.S. dollar, British pound, euro, Hong Kong dollar and Singapore dollar, with real-time processing available around the clock. The value of the pilot transactions was not disclosed. JPMorgan's Kinexys, DTCC and Franklin Templeton have also joined the Canton ecosystem.
Vast Bank Plans Retail Tokenized Deposit Service This Year
Deposit tokenization allows banks to convert customers’ U.S. dollar deposits into digital representations on a blockchain, combining real-time transfer efficiency with the regulatory framework governing bank deposits. Vast Holdings-owned Vast Bank sees the model as a bridge between traditional finance and digital assets and estimates that the market could surpass stablecoins by 2030.
Vast Bank recently announced a partnership with digital-asset platform Uphold to launch a tokenized U.S. dollar deposit service for retail customers in 2026. The companies will combine the bank’s deposit infrastructure with Uphold’s digital-asset platform, allowing customers to access and use tokenized dollar deposits in compliance with regulations. No specific launch date or investment amount has been disclosed.
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