HSBC Holdings is preparing to introduce tokenised deposits to its corporate clients in the UAE and the US during the first half of 2026, marking a significant step in the bank’s continued expansion of blockchain-driven payment technologies.
The move follows the bank’s rollout of similar services in Hong Kong, Singapore, the United Kingdom and Luxembourg, and reflects HSBC’s strategy to position the UAE as a key market for next-generation financial infrastructure.
Tokenised deposits convert traditional fiat balances into secure digital tokens using HSBC’s proprietary Distributed Ledger Technology. Unlike volatile cryptoassets, these tokens are direct claims on funds already held in regulated bank accounts and can pay interest just like standard deposits.
Financial experts explained that the advantage lies in how they can be transferred and settled: transactions that previously required cut-off times, batch cycles or multi-day international processes can now be executed in real time, 24 hours a day. “For UAE-based companies, this means payments that settle in seconds, even across borders, reducing delays that often tie up working capital,” they said.
Manish Kohli, HSBC’s global head of payment solutions, has described tokenized deposits as an emerging cornerstone of corporate liquidity management. By removing time-based constraints and automating key processes, the system allows treasurers to keep funds active around the clock — an increasingly important capability for firms operating across regions or engaging in high-volume transaction flows. For the UAE’s fast-growing sectors, including logistics, energy, aviation and digital commerce, the ability to free up liquidity more quickly can translate into smoother operations and lower financing costs.
Fintech experts said technology also offers advantages for risk management. “Because deposits are represented as digital tokens on a distributed ledger, companies gain a clearer view of their cash positions in real time. Payments can be programmed to occur automatically once certain conditions are met, reducing human error and providing stronger control over treasury workflows.”
HSBC is developing features that use artificial intelligence to assist with liquidity forecasting, automate complex payment chains and balance accounts without manual intervention — capabilities expected to appeal to UAE corporations with regional or global footprints.
Tokenised deposits differ fundamentally from stablecoins, which are issued by private entities backed by assets such as government bonds and often circulate on public blockchains outside the traditional banking system. HSBC’s model keeps digital money creation entirely within a regulated framework, an approach that many institutional clients prefer for compliance, transparency and risk-management reasons. While the bank is holding discussions with stablecoin issuers to provide settlement and reserve-management services, it has made clear that any decision to launch its own stablecoin would depend on clearer regulatory guidance.
HSBC’s decision to bring tokenised deposits to the UAE comes as the country strengthens its position as a global wealth hub and a centre for financial innovation. The bank recently opened its first Middle East wealth centre in Dubai, a flagship facility designed for affluent and high-net-worth clients. Located at its Jumeirah branch, the centre offers private advisory spaces, dedicated relationship managers and tailored solutions to help clients protect and expand their assets.
The UAE continues to attract record levels of global wealth, with projections indicating nearly 10,000 new millionaires relocating to the country in 2025. This growing concentration of capital, combined with the country’s supportive regulatory environment for digital finance, makes the UAE an ideal launchpad for HSBC’s next phase of blockchain-enabled banking services. As tokenized deposits go live in 2026, UAE businesses are expected to be among the earliest beneficiaries of a shift toward faster, more efficient and highly automated financial infrastructure.
