HSBC Holdings Plc plans to officially launch its Tokenized Deposit Service (TDS) to corporate users in the United States and the United Arab Emirates in the first half of 2026.
The expansion, announced in an interview with Bloomberg on November 18, 2025, backs the TDS’s position as an all-round-the-clock 24/7 payment system for blockchain-enabled payments. Leveraging the United States GENIUS Act regulatory law, which remains key to increasing institutional adoption.
What HSBC’s Tokenized Deposits Actually Do
HSBC’s TDS allows corporate clients and users to convert and hold traditional fiat deposits as blockchain tokens, allowing fast real-time domestic and international cross-border transactions, programmable payments, automated interest distribution, and advanced treasury features such as AI-driven autonomous cash management.
Unlike most stablecoins issued by non-bank entities, TDS tokens are direct balance-sheet liabilities of HSBC, accumulate interest while they remain within the regulated structure of banking regulations, capital requirements, and deposit protection schemes.
“The topic of tokenization, stablecoins, digital money and digital currencies has obviously gathered so much momentum. We are making big bets in this space,” Manish Kohli, HSBC’s global head of payment solutions, told Bloomberg.
In May 2025, TDS launched in Hong Kong and Singapore with Ant International as the first client, supporting HKD, USD, and SGD. Then in september 2025, cross-border features were introduced to support transactions between multiple jurisdictions, alongside an introduction to the European audience in the United Kingdom and Luxembourg.
The services now currently support 5 major currencies, including the euro, British pound, U.S. dollar, Hong Kong dollar, and Singapore dollar. The intended launch in the USA and UAE will introduce UAE dirhams, while it targets dollar-focused liquidity hubs and the UAE’s digital finance ambitions under VARA.
Early adopters report cost reductions of as high as 30% in cross-border flows, with instant availability reducing reconciliation times due to instant settlement.
The Real Competition Is Heating Up Between Stablecoin Giants and Regulated Banks
The scheduled launch in the United States and the United Arab Emirates follows the passage of the GENIUS Act on July 18, 2025, which established the first federal framework for payment stablecoins in the United States, requiring 1:1 reserves in high-quality assets and exempting compliant issuers from certain securities regulations.
HSBC’s recent move to expand to the United States will intensify competition with both non-bank stablecoin issuers and rival banks. JPMorgan expanded its own deposit token offering, JPM Coin, to the Base blockchain on November 12, 2025, following its regulatory compliance and banking protections, as previously reported by Crypto Breaking News.
Kohli confirmed HSBC continues to consider launching a dedicated stablecoin once regulatory conditions are fully clarified. Meanwhile, fintech competitor Revolut has processed more than $690 million in crypto-enabled remittances since integrating Polygon for zero-fee transfers earlier this month.
Why Tokenized Assets Are the Next Institutional Battleground
With the planned HSBC’s expansion, the crypto market is said to be highly positive, as users believe in the growing role of tokenized real-world assets (RWAs) and on-chain institutional money.
Market analysts predict the total tokenized asset market could reach $10 trillion by 2030 as major banks and fintech companies continue to adopt on-chain technologies for traditional finance, a blend between the efficiency of blockchain with the safety of regulated balance sheets.
HSBC’s latest decision is a testament to the new growing trend, as major global banks are no longer watching the tokenization race from the sidelines; they are now actively building the infrastructure that will power the next generation of institutional digital finance.
