HSBC Pursues Tokenized Deposits and Loans

HSBC is exploring the use of tokenization to revolutionize its banking services. According to Sun Lei, HSBC’s Global Head of Local and Innovative Payments, the bank has been allocating resources towards developing tokenized deposit products. He believes that even if just 5% to 10% of commercial bank deposits shift to tokenized forms, this would surpass the scale of any existing cryptocurrency market. This initiative leverages the bank’s private blockchain technology which aligns with Ethereum’s EVM compatibility and ERC-20 standards. While HSBC remains cautious about public blockchain technologies for certain scenarios, it has yet to rule out future adoption.