Redefining Treasury: The New Rails for Real-Time Treasury

PodcastHSBC Global ViewpointCalvin LeeOct 4

Tokenized deposits are presented as a way to move trusted bank money through programmable, around-the-clock treasury systems, including cross-border transfers and potential real-time FX settlement. Broader adoption depends on regulatory clarity, interoperability, and legal safeguards, while tokenized money market funds could let firms invest surplus cash outside traditional banking hours. Speakers also describe automated, event-driven treasury and AI-assisted risk analysis as potential future applications.

Tokenization Banking Financial Regulation Automation Currencies Artificial Intelligence

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Key Takeaways

Tokenized deposits keep the status of commercial bank money—backed by the bank and subject to existing regulatory and compliance frameworks—while representing deposits on a distributed ledger. Clearer regulatory pathways, institutional infrastructure collaboration, and early-client demand are helping address treasury pain points such as cutoff times and cash held in the wrong places.

Ant International has more than 200 legal entities on its blockchain and has moved about 50% of its cross-border liquidity movements onto the network. Its process of minting tokenized deposits in Hong Kong, transferring them to London, and burning them into fiat there enables around-the-clock liquidity movement to match its 24/7 business.

Fast-payment systems have transformed many markets but generally remain domestic and do not support the cross-border, wholesale, or foreign-currency transfers global treasuries need. Calvin says tokenized bank deposits could enable FX trades with banks such as HSBC to settle in seconds, potentially addressing a different set of payment and settlement needs.

TECHNOLOGY

Tokenized Deposits — A tokenized deposit is a traditional commercial bank deposit represented on a distributed ledger or blockchain. It remains bank money, backed by the bank and subject to existing regulatory and compliance frameworks, while bringing trusted funds into real-time, programmable treasury environments.

“A tokenized deposit is essentially a traditional bank deposit, but represented in digital form on a distributed ledger or blockchain…”—

Adoption Drivers — Clearer regulatory pathways, institutional infrastructure partnerships, and demand from early-adopter clients are moving tokenized deposits toward broader adoption. Early use cases are highlighting practical treasury problems, including cutoff times and cash held in the wrong places.

“And what we really see is that we're seeing this becoming sort of more mainstream adoption of the products…”—

Cross-Border Liquidity — Ant International began exploring blockchain for treasury infrastructure in 2019 and now has more than 200 legal entities on its blockchain. About 50% of its cross-border liquidity movements have shifted to the network, including transfers among entities in Hong Kong, Singapore, London, and Luxembourg.

“So now we have more than 200 legal entities. Our ecosystem has been put on the blockchain. We call it real treasury blockchain…”—

MARKETS

Flexible Investing — Ant International uses tokenized deposits to settle tokenized money market funds, allowing it to invest and redeem surplus liquidity in real time or several times a day. Calvin says this flexibility could make its investment strategy more dynamic.

“Basically, we use tokenized deposit as a settlement layer to connect to tokenized money market fund…”—

Tokenized Deposit Basics

The speakers define tokenized deposits as regulated commercial bank money on a blockchain and say clearer rules, institutional infrastructure, and client demand are driving adoption.

Ant International Treasury Platform

Ant International describes using its Whale blockchain treasury platform for intercompany liquidity, FX settlement, money market fund investment, and selected vendor payments.

Cross-Border Treasury Friction

Ant International says traditional banking hours clash with its always-on global business, creating liquidity gaps, FX exposure, prefunding needs, and higher payment costs.

Tokenized Deposits Versus Faster Payments

The speakers argue tokenized deposits complement domestic faster-payment systems by enabling programmable, cross-border wholesale liquidity movement in multiple currencies.

After-Hours Cash Investment

Ant International explains how tokenized deposits could settle tokenized money market fund transactions around the clock, putting late-arriving surplus cash to work.

Tokenized Fund Infrastructure

HSBC says real-time investment requires delivery-versus-payment settlement, custody and asset servicing, plus on-chain access to underlying investments and trusted security providers.

HSBC and Ant Co-Creation

Ant International and HSBC trace their collaboration from early blockchain work to a production-grade treasury service, emphasizing client-led problems and joint development.

Standards and Legal Safeguards

The speakers say wider cross-border adoption depends on regulatory clarity, common messaging standards, interoperability, legal recognition, settlement finality, and AML and KYC safeguards.

Programmable Treasury and AI

The guests envision event-driven treasury, automated payments and liquidity management, and AI-assisted risk decisions, while advising treasurers to start with business pain points.

Digital Asset Risk Management

Celine sees programmable systems and AI helping treasurers analyze FX and interest-rate risks, and stresses working with trusted partners to solve practical business frictions.