HSBC has launched its Tokenised Deposit Service (TDS) in Singapore, expanding its blockchain-based payment capabilities across Asia. This service, initially launched in Hong Kong SAR, allows for 24/7 real-time instant settlement of cross-border transactions between Hong Kong SAR and Singapore. It aims to enhance treasury operations and cash flow management, crucial in managing liquidity amidst volatile foreign exchange and interest rate environments.
The introduction of TDS underscores Singapore’s position as a leading international treasury hub, where corporations are increasingly adopting digital treasury models. The service is expected to streamline operations for businesses operating across these financial centres.
Linklaters, a global law firm, advised HSBC on this launch. The team was led by Peiying Chua, Head of Singapore Financial Regulation and Asia Head of Fintech, with support from associate Alcander Seah.
Chua remarked, “This transaction exemplifies the convergence of traditional banking and cutting-edge digital solutions. We are proud to support our client in delivering a service that not only enhances operational efficiency but also sets a new benchmark for cross-border financial innovation in Asia.”
Linklaters has been at the forefront of digital asset innovation, having advised on several market-firsts in the region. These include the token offering for Zilliqa, a Singapore-based blockchain platform, and the world’s first blockchain-based fractional bond trading platform, BondbloX.
The launch of HSBC’s TDS in Singapore marks a significant step in the bank’s strategy to leverage blockchain technology for enhanced financial services, potentially setting a precedent for future innovations in the sector.
