Standard Chartered Launches Tokenized Deposits in Hong Kong

Real-Time Transfers Across Participating Banks

The new service allows eligible corporate clients to transfer deposits between participating banks in real time. It also supports 24/7 settlement using central bank money, including wholesale central bank digital currency (CBDC).

The initiative aims to make corporate payments and financial settlements faster and more efficient.

Companies Complete Live Transactions

China AMC, Finloop, and PantherTrade have already completed live transactions through the initiative.

Standard Chartered is also working with Fireblocks to integrate banking services into its platform. Additionally, HashKey has joined the project as a participant.

HKMA Supports Hong Kong's Tokenization Market

The launch is part of the Hong Kong Monetary Authority's Project Ensemble, which aims to develop Hong Kong's tokenization market and support the use of digital financial assets.

The HKMA introduced a regulatory sandbox under the project to test tokenized deposits and asset settlement.

How Tokenized Deposits Work

Tokenized deposits are digital representations of bank deposits recorded using blockchain or distributed ledger technology. They remain on a bank's balance sheet and are regulated as traditional bank deposits.

Unlike stablecoins, which are generally issued by non-bank companies and backed by reserves, tokenized deposits represent deposits held directly with regulated banks.

The launch marks another step in Hong Kong's efforts to develop digital financial infrastructure and improve the efficiency of corporate payments and settlements.

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