HSBC plans to 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. The initiative is part of a digital roadmap that includes tokenized bonds, tokenized gold and custody services, placing tokenized deposits at the center of the competition for digital money infrastructure. Rather than issuing its own stablecoin, HSBC aims to serve as infrastructure and reserve and settlement account services provider for stablecoin issuers, leveraging regulatory trust and limiting issuance risks.HSBC will integrate its tokenized deposit offering into platforms like HSBC Orion to enable 24/7 transfers, real-time position visibility and programmable payments for wholesale clients. Tokenization is the process that converts an asset or right into a digital token recorded on a blockchain, providing a digital representation designed to operate within banking and market infrastructures.
These digital representations remain on the bank’s balance sheet and maintain the legal nature of a traditional deposit, according to the material consulted. Planned functionalities include liquidity management with granular control, automatic execution of contractual conditions via smart contracts and the possibility of operating “autonomous treasuries” supported by automation and artificial intelligence.
For corporate clients, the offering seeks to reduce settlement times, cut operational costs and minimize capital tied up due to payment delays. HSBC has chosen to position itself as a provider of infrastructure and reserve and settlement account services for stablecoin issuers, rather than issuing its own stablecoin — a strategy that seeks to leverage the bank’s regulatory trust and limit direct exposure to issuance risks.
Regulation, compliance and risks for HSBC
In the United States, the FDIC has indicated that tokenized deposits retain the same legal nature as traditional deposits and would be covered by deposit insurance up to $250.000 per depositor, a key piece for institutional adoption. Legislative proposals such as the so-called GENIUS Act intend to bring stablecoin issuers into financial regulatory frameworks, with reserve requirements and KYC/AML obligations.
Other relevant supervisors are the OCC, the Federal Reserve and the SEC, each with competencies that can influence the operations of banks and issuers. In the Emirates, the regulatory framework is more proactive: the Central Bank of the UAE and financial centers such as Abu Dhabi Global Market and Dubai International Financial Centre promote frameworks that combine prudential supervision with incentives for innovation.
Deposits issued by banks are expected to be subject to existing banking supervision and strict AML/CFT rules. Technical and operational risks are highlighted: vulnerabilities in smart contracts, cybersecurity threats, fragmentation between networks and interoperability issues, and operational management risks that require specialized governance. These weaknesses demand continuous audits, multilayered defenses and shared standards to avoid systemic failures.
The expansion to the U.S. and UAE consolidates HSBC’s bet on integrating tokenization into transactional and treasury banking, relying on its regulatory and technological position.
