HSBC and Ant Group will examine deposits held under the HKMA sandbox.

Banking giant Hong Kong and Shanghai Banking Corporation (HSBC) has tested the use of tokenized deposits with Ant Group, a major Chinese financial services provider founded by Jack Ma in a sandbox set up by the Hong Kong financial institution. Authority.

The initiative, led by the banking institutions, aims to explore the potential of deposit tokens to enable the always-on and real-time movement of treasury funds between accounts held by the corporation in the HSBC network.

During the test, HSBC was connected to a blockchain platform developed by Ant Group and supported by Ant Group's banking partners. In an official communication shared with Cointelegraph, HSBC explained that the test involved issuing, transferring and redeeming deposit tokens:

“It paves the way for future research on how blockchain and tokenization can increase efficiency and drive innovation in corporate treasury management.

The involvement of Ant Group's banking partners improves treasury fund circulation through improved turnaround time, cost efficiency and visibility. Vincent Lau, Head of Global Payments and Global Payment Solutions at HSBC, confirmed the bank's interest in tokenized deposits and other financial innovations to streamline and facilitate treasury management for customers.

HSBC Swift has been an active participant in various central bank digital currency initiatives, including project mBridge, a cross-border CBDC initiative.

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HSBC will reportedly introduce its first domestic cryptocurrency services in June 2023.

SCOOP: HSBC, the largest bank in Hong Kong, today allows its customers to buy and sell Bitcoin and Ethereum ETFs listed on the Hong Kong exchange, and is the first bank to allow it in Hong Kong. The move will expand the exposure of local users to cryptocurrencies in Hong Kong. pic.twitter.com/vH0LieSVGw

— Wu Blockchain (@WuBlockchain) June 26, 2023

According to the report, HSBC offers cryptocurrency exchange-traded funds that include CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF and Samsung Bitcoin Futures Active ETF listed on the Hong Kong Stock Exchange.

HSBC did not immediately respond to Cointelegraph's request for comment.

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