The post HSBC To Launch Tokenized Deposits In US And UAE in 2026 appeared com. Global megabank HSBC is doubling down on tokenization over stablecoins as global banks rush to keep pace in the stablecoin race. HSBC Holdings will start offering tokenized deposits to its corporate clients in the US and the United Arab Emirates in the first half of 2026, according to a Bloomberg report on Tuesday. The Tokenized Deposit Service (TDS) by HSBC enables clients to send money domestically and abroad in seconds around the clock, said Manish Kohli, HSBC’s global head of payments solutions. “The topic of tokenization, stablecoins, digital money and digital currencies has obviously gathered so much momentum. We are making big bets in this space,” Kohli said. Tokenized deposits versus stablecoins Tokenized deposits are digital representations of bank deposits issued on a blockchain by regulated banks, allowing for instant 24/7 transfers and programmable payments. Unlike stablecoins, which are often linked to fiat currencies like the US dollar and backed by assets like government debt, deposit tokens are created using the issuer’s balance sheet. While stablecoin issuers like Circle are not allowed to pay yields on stablecoin holdings by users, tokenized deposits offer interest payouts among their key features. “Nearly every large company that we have a conversation with, we are seeing a big theme around treasury transformation,” the HSBC executive said. HSBC stablecoin launch not ruled out The product’s expansion in the US and UAE is the latest by HSBC, following its debut of the offering in Hong Kong in May, with Ant International becoming the first client to utilize the TDS solution. The bank has since expanded the offering.