UAE banking set for new era with HSBC tokenised deposits

HSBC Holdings is preparing to introduce tokenised deposits to its corporate clients in the UAE and the US during the first half of 2026, marking a significant step in the bank’s continued expansion of blockchain-driven payment technologies.

- Issac John

The move follows the bank's rollout of similar services in Hong Kong, Singapore, the United Kingdom and Luxembourg, and reflects HSBC’s strategy to position the UAE as a key market for next-generation financial infrastructure.

Tokenised deposits convert traditional fiat balances into secure digital tokens using HSBC’s proprietary Distributed Ledger Technology. Unlike volatile cryptoassets, these tokens are direct claims on funds already held in regulated bank accounts and can pay interest just like standard deposits.

Financial experts explained that the advantage lies in how they can be transferred and settled: transactions that previously required cutoff times, batch cycles or multi-day international processes can now be executed in real time, 24 hours a day. “For UAE-based companies, this means payments that settle in seconds, even across borders, reducing delays that often tie up working capital,” they said.

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