HSBC is extending to Europe, via its Luxembourg hub, its Tokenised Deposit Service (TDS), first put into production in Hong Kong.
HSBC is extending its Tokenised Deposit Service (TDS) to Europe, via its Luxembourg hub. The service, which allows clients to hold and transfer deposits as digital tokens on a distributed ledger, has already gone live in Hong Kong earlier this year. Luxembourg is now the first European jurisdiction to host the offering, underscoring its appeal as a centre for financial innovation.
The service is designed to allow corporates to move cash instantly across jurisdictions, without time zone or closing-time constraints. Using distributed ledger technology, deposits are represented as digital tokens that can be transferred directly from existing treasury systems. This enables real-time liquidity management and opens the way to new features such as programmable payments and atomic settlement.
Luxembourg’s selection as HSBC’s European hub is strategic. The country has built a reputation as a regulatory pioneer for tokenisation and DLT, offering legal clarity that many other EU jurisdictions are still developing.
Luxembourg also hosts HSBC’s Orion platform, which provides the infrastructure for issuing digital bonds and other tokenised securities. Together, these initiatives further cement Luxembourg as a key location for the bank’s tokenisation strategy in both payments and capital markets. Luxembourg’s selection as HSBC’s European hub is strategic. The country has built a reputation as a regulatory pioneer for tokenisation and DLT, offering legal clarity that many other EU jurisdictions are still developing.
