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Technology HSBC, Standard Chartered Test Interbank Tokenized Deposits On SWIFT
Banks clear major milestone toward real-time, cross-border tokenized deposits.
Tokenized deposits are a step closer to broader institutional use as HSBC Holdings PLC and Standard Chartered PLC completed the first bank-to-bank transaction via the banking messaging consortium SWIFT’s digital blockchain-backed ledger, the banks reported on Aug. 19.
“As institutional demand grows for faster, more efficient ways to move liquidity, and optimize working capital increase, interoperable tokenized deposits will play an increasingly important role in helping corporate and institutional clients manage treasury, unlock operational efficiencies and support real time liquidity management across markets,” said Mark Willis, head of emerging payments, transactions services, and digital assets at Standard Chartered, in a prepared statement.
Interoperability remains one of the main barriers to tokenized deposit adoption.
The payment transaction sent by HSBC to Standard Chartered was recorded as a tokenized deposit obligation on HSBC’s Tokenised Deposit Service and Standard Chartered’s tokenized-deposit infrastructure, while SWIFT’s blockchain platform acted as the orchestration and record-keeping layer.
“It demonstrates how digital money issued by banks can be interoperable across institutions while maintaining the integrity and regulatory oversight of the existing financial ecosystem,” Lewis Sun, head of digital currencies at HSBC, added in the statement.
The transaction comes six weeks after SWIFT made its digital ledger platform available for initial use. SWIFT officials said the ledger will gain additional functionality after its initial go-live phase.
Tokenized deposits differ from stablecoins by their backers and how they operate. Private institutions issue stablecoins backed by an audited reserve of highly liquid financial instruments. Tokenized deposits are digital representations of bank deposits issued by regulated financial institutions and act as direct claims on those institutions. Owners can also convert tokenized deposits back into fiat currency and restore account balances.
For corporate treasuries, tokenized deposits provide the benefits of digital money — faster settlement, programmable money, digital asset integration, and immutable transactions — while maintaining existing banking relationships and aligning with existing banking regulations.
HSBC and Standard Chartered’s initial transaction via the SWIFT digital ledger is only the latest of such announcements in the past several weeks. A day earlier, the Canton Network announced that tokenized deposits are live on its network with HSBC, Lloyds Bank PLC, and JPMorgan Chase & Co. in various stages of testing, TradingView reported.
In early June, U.S. payments rail operator The Clearing House, which is owned by 25 of the largest financial institutions, released plans to launch on-chain clearing and settlement of tokenized deposits within the established banking framework.
A month later, the Cari Network announced a soon-to-launch pilot to support real-time settlement, liquidity management, and digital money movement. Unlike other initiatives backed by tier-1 institutions, Cari Network is designed by U.S. regional institutions First Horizon Corp., Huntington Bancshares Inc., KeyBank National Association, M&T Bank Corp., Old National Bancorp, and SouthState Bank Corp.
The importance of these projects is less about how they achieve results and more about whether they can provide faster settlement, lower reconciliation costs, and real-time cash management. The next step will be whether these pilots develop into production-quality systems that can deliver interoperability and meet regulatory obligations across various jurisdictions.
Rob Daly covers fintech and the economy. Contact him at rdaly@gfmag.com.
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HSBC has praised our investigation into Katie Price’s husband Lee Andrews — and repaid the £1,000 our journalist spent to expose him as a fraudster.
Clemmie Moodie sent conman Andrews the money from her account with the bank via its app to see if he would make good on promises to treble it.
David Callington, head of economic crime prevention at HSBC UK, said: “It’s great that The Sun is educating readers on how to spot and avoid fraud and what warning signs to look out for.
“If any HSBC UK customers find themselves in the same position as Clemmie, we’d invite them to get in touch with us to see how we can help.”
The bank concluded Andrews had forged its own branding to fabricate a fake payment screenshot — a document showing £2,900 due to land in Clemmie’s account on May 15 that never arrived.
She had transferred the cash after he pitched a “zero risk” investment.
What followed was a string of excuses about stock market turns and Abu Dhabi banking hours, then the fake HSBC screenshot, then silence.
Nineteen days after handing the money over, Clemmie went public.
Andrews, a Dubai-based self-styled businessman who has called himself an “international mastermind criminal”, is now wanted by Interpol after Hertfordshire Police escalated their investigation into him.
Former glamour model Katie, 48, claims her missing husband is in prison on spying charges in Dubai.
Mr Callington warned: “Social media has become a leading hunting ground for investment scammers.
“They will share fake testimonials and forged documents with their victims to build trust quickly.
“The first major red flag with any investment scam is usually the assurance of guaranteed, unrealistically high returns.
“Take time to do your research, and speak to your bank if you are unsure about the legitimacy of an investment.”
HSBC experts have identified key red flags customers need to know.
1. “GUARANTEED” or unusually high returns are the first warning sign. If fixed, risk-free or above-market returns are promised — think “8% a month” or “double your money” — walk away. Legitimate investments carry risk.
2. PRESSURE and urgency tactics are the scammer’s best friend. They include phrases like “limited allocation”. If someone tells you not to seek independent advice or creates a false deadline, that is a major alarm bell.
3. UNREGULATED or hard-to-verify firms are a serious danger sign. If the product description is vague, treat it with extreme caution. No audited financials or clear documents where you would expect them? That is a red flag.
4. WATCH how they ask you to pay. Requests to send money to personal accounts, to use crypto or gift cards are classic scam tactics. And beware of anyone who tells you to pay fees or tax upfront in order to “release” profits.
5. A SLICK-looking app may show profits climbing, but when you try to withdraw, there are delays, blocked requests or a need to “top up” funds. If a platform makes it hard to get your money back, something is very wrong.
