FDIC Approves HSBC's Use of Tokenized Deposits in the United States and UAE

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FDIC Approves HSBC's Use of Tokenized Deposits in the United States and UAE

Bitget-RWA2025/11/19 14:14

By:Bitget-RWA

- HSBC plans to launch tokenized deposits in the U.S. and UAE, leveraging the $24B tokenized real-world assets market growth. - FDIC's proposed guidelines under the GENIUS Act aim to standardize stablecoin regulations, offering legal parity for blockchain-based deposits. - Leadership transition with George Osborne potentially accelerating HSBC's digital strategy amid scrutiny over its high debt and market risk profile. - Proactive FDIC reforms, including year-end stablecoin issuance applications, could red

HSBC Holdings PLC is preparing to broaden its digital banking offerings in both the United States and the United Arab Emirates, planning to launch tokenized deposits as part of its strategy to tap into the expanding stablecoin sector

as reported by sources

. This initiative coincides with regulatory shifts in the U.S., where the Federal Deposit Insurance Corporation (FDIC) is

considering updated policies

to support the adoption of blockchain assets within mainstream banking.

During the Federal Reserve Bank of Philadelphia's Fintech Conference on November 13, FDIC acting chair Travis Hill highlighted that tokenized deposits should be afforded the same legal safeguards as traditional deposits. "Transferring a deposit from conventional finance to a blockchain or distributed ledger shouldn't alter its legal status," Hill remarked,

indicating a regulatory evolution

to better accommodate digital assets. This perspective encourages banks such as

HSBC

to pursue tokenization as a means to improve liquidity and streamline international payments.

Leadership sources suggest

, that HSBC's ongoing leadership changes, with George Osborne reportedly being considered for the chairman position, could further drive the bank’s digital ambitions. Osborne, who previously served as the UK’s chancellor, is known for supporting financial innovation, which could complement HSBC’s move toward tokenized products. Nonetheless, the bank’s recent financial standing

continues to face examination

due to significant debt and a beta of 0.46, reflecting less volatility compared to the S&P 500. Despite these obstacles,

HSBC’s dividend yield of 4.55%

and a 43.4% growth over the past three years demonstrate its focus on delivering value to shareholders.

The FDIC’s

draft regulations

, which propose a stablecoin issuance framework under the GENIUS Act, are designed to unify reserve and disclosure standards for digital currencies. Hill suggested that a formal application process for stablecoin issuers could be introduced by the end of the year, potentially lowering operational risks for banks moving toward tokenized solutions. Meanwhile, the market for tokenized real-world assets—excluding stablecoins—

has climbed to $24 billion

in the first half of 2025, fueled by private credit and U.S. Treasury-linked tokens.

HSBC’s entry into tokenized deposits reflects a wider movement within the industry. Financial institutions are increasingly piloting blockchain technologies to satisfy the demand for quicker and more transparent services. Still, regulatory certainty remains essential for scaling these projects.

The FDIC’s forward-thinking stance

could establish a global standard, empowering banks like HSBC to compete in the stablecoin arena with increased assurance.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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