HSBC launches Hong Kong's first Blockchain settlement service, reducing costs by 30% compared to traditional systems.

HSBC stated that this payment method may be cheaper and faster compared to traditional systems.

Source: bitcoinist

Compiled by: Blockchain Knight

HSBC has launched Hong Kong's first settlement service using blockchain technology. This service converts regular bank deposits into digital tokens, allowing businesses to transfer funds almost instantly.

According to Lewis Sun, the global head of domestic and emerging payment solutions at HSBC's Global Payments Solutions division, this payment method may be cheaper and faster compared to traditional systems.

According to reports, HSBC's newly launched tokenized deposit scheme allows businesses to convert ordinary deposits into tokens on a blockchain platform. Business funds remain on the bank's balance sheet, but they can send and receive these funds just like sending digital currency.

Sun stated that this method can save on extra costs and delays, and also helps to track every payment on the chain, allowing businesses to understand the flow of funds at any time.

HSBC stated that the service operates around the clock. Corporate clients can transfer Hong Kong dollars and US dollars between HSBC Hong Kong wallets at any time.

This is a significant change compared to standard banking operations, where transfers are typically paused during the night or on weekends. Real-time transfers mean that financial managers can respond quickly to market fluctuations or urgent needs.

Ant International, a subsidiary of Alibaba Group, is the first client to test the system. HSBC stated that Ant International used its Whale platform to transfer funds instantly. After the pilot in May, the bank incorporated the relevant experience into its formal services.

Kelvin Li, the General Manager of Ant International Platform, stated that tokenization is a bridge between traditional banking and blockchain. He also mentioned that the project aims to make financial operations more transparent and efficient.

This launch by HSBC has received support from the Hong Kong Monetary Authority's Distributed Ledger Technology Regulatory Sandbox. HSBC is one of the few banks conducting proof-of-concept trials under the HKMA's tokenization program.

In August, the Hong Kong Monetary Authority established a central bank digital currency testing mechanism. Six companies, including HSBC, began to experiment with tokenized currency for digital asset trading.

This move brings Hong Kong closer to interbank blockchain settlement. HSBC plans to expand its services to the Asian and European markets in the second half of 2025.

The new system could change the way large enterprises handle cash. Companies no longer have to wait for banks to open or pay unexpected fees. The instant information from each payment can be transformed into a clearer liquidity view throughout the day.

However, the project also faces challenges. Companies must update their backend systems to be able to interact with tokens. In addition, the blockchain platform must remain secure to prevent intrusions or technical failures.

According to the latest ranking of the top 50 lenders in Europe published by S&P Global Market Intelligence, HSBC is the largest bank in Europe by assets.