This test is aimed towards the tokenization of already existing deposits with the aim of their easier transaction between the accounts that are within the HSBC network, reports Finextra on November 1.
The test comprised three sections: issuance, transfer, and redemption of deposit tokens, and was conducted under the Hong Kong Monetary Authority’s Fintech Supervisory Sandbox arrangement.
Using an already mentioned blockchain technology provided by Ant Group, global trade centers were connected, with the ability to facilitate payments in major currencies such as HKD, CNY, USD, GBP, and EUR.
“The test exemplifies cutting-edge banking capabilities available in Hong Kong as a corporate treasury hub. At HSBC, we will continue to leverage tokenized deposit and other financial innovations to streamline and optimize treasury management for our clients,” said Vincent Lau, global head of emerging and global payments solutions for HSBC.
Previous HSBC dwellings in blockchain technology
This test was the next in line of projects that HSBC is undertaking in an attempt to modernize and revolutionize payments procurement and digitalization, with a focus on security.
Previously, it engaged in projects such as mBridge, which aimed to bring central bank digital currencies (CBDCs) to cross-border wholesale transactions and explore the possibility of an interoperable digital money platform known as the regulated liability network in the US and UK.
Successful results of these tests may prove to be a pivotal point in modernizing the transaction processes and treasury management.
A continuous adaptation of innovative solutions may put HSBC in a prime position for implementing new features in an evolving financial landscape, which serves as further proof of resourcefulness and implementation possibilities of blockchain technologies in the future.