HSBC has launched its Tokenised Deposit Service (TDS) in the UAE, expanding its digital money capabilities in the region and enabling eligible corporate and institutional clients to move funds in real time across jurisdictions using blockchain-based infrastructure.
Through TDS, eligible clients can transfer funds 24/7 — domestically and cross-border — from treasury centers to subsidiaries, instantly and on-chain, improving liquidity management and global commerce.
Mohamed Al Marzooqi, Chief Executive Officer, UAE, HSBC Bank Middle East Limited, said: “This launch marks another significant step in the future of money movement, and the UAE is uniquely positioned to lead this shift. The introduction of tokensied deposits to the UAE is a reflection of the maturity of the local regulatory environment when it comes to digital finance and the genuine demand from corporates operating in and through this market for more capable treasury tools.”
With this launch, the UAE dirham joins a network that already supports euros, pound sterling, US dollars, Hong Kong dollars, and Singapore dollars — extending TDS’s reach into the Gulf and connecting it to the broader trade and investment flows that run through this market.
Kyle Boag, Regional Head of Global Payments Solutions, HSBC MENAT, said: “The demand for instant, secure, always-on liquidity solutions is only increasing as businesses seek to compete in a globalized and highly digitalised world. Tokenised deposits are a natural extension of our global digital asset strategy into one of the world’s most dynamic financial hubs.”
Benefits of TDS can include:
- Accelerated settlement within the tokenized deposit network
- 24/7 availability for domestic and cross-border transfers
- More efficient working capital management and liquidity movement across accounts and entities
- Compatibility with existing banking and treasury infrastructure
- Improved visibility into cash positions to support real-time liquidity decisions
- Reduced manual processing, enabling straight-through processing to streamline operations
- Expanded Gulf currency reach with the addition of the UAE dirham
As part of its broader digital asset strategy, HSBC continues to invest in building an open, interoperable money layer, connecting core financial infrastructure with emerging digital networks. This supports a range of use cases, including bridging blockchain-enabled workflows with payment and banking rails, enabling real-time treasury management, facilitating settlement of tokenized assets, and integrating with regulated digital money solutions.
