What the Pilot Involved
Conducted through HSBC's Global Payments Solutions (GPS) business, the pilot tested the full lifecycle of tokenised deposits within Canton-enabled applications. HSBC simulated the transfer of tokenised deposits and their atomic settlement against other digital assets, exploring how Canton's infrastructure can serve as a settlement rail connecting cash and asset legs through delivery-versus-payment (DvP) mechanisms.
The controlled environment demonstrated that HSBC's deposits can be issued on a public, permissioned network while maintaining the privacy, compliance, and regulatory standards expected of a global institution.
Why Canton Network
Canton's architecture proved central to the pilot's value proposition. Its interoperability layer allowed HSBC's tokenised deposits to move across institutions and applications seamlessly — a capability that Yuval Rooz, CEO of Digital Asset and co-founder of the Canton Network, described as increasingly in demand:
"Tokenized deposits are gaining traction across capital markets, corporate banking, and treasury, and Canton is quickly becoming a primary network for deployment, enabling tokenized deposits to move seamlessly across institutions and applications while maintaining privacy, control and interoperability."
HSBC's Broader Tokenisation Strategy
The pilot builds on HSBC's existing TDS rollout, which allows corporate clients to convert fiat deposits into digital tokens on a 1:1 basis and transfer them instantly on HSBC's internal ledger. The service currently supports USD, GBP, EUR, HKD, and SGD, offering 24/7 real-time settlement and programmable payment capabilities.
Manish Kohli, Head of Global Payments Solutions at HSBC, emphasized the strategic direction: "Our focus is on building secure, interoperable capabilities that enable clients to move money more efficiently across different environments, while maintaining the trust and regulatory standards expected of a global bank."
The pilot signals HSBC's intent to extend TDS beyond its internal ledger and into shared institutional infrastructure — with Canton Network positioned as a key connectivity layer for that expansion.
