Ant International and HSBC have initiated a pilot project to test a new cross-border payments solution that uses tokenised deposits on Swift’s network, supported by ISO 20022.
This initiative is expected to harness the power of Swift’s global messaging infrastructure in conjunction with HSBC’s Tokenised Deposit Service, alongside Ant International’s advanced blockchain technology for enhanced security and efficiency.
The Proof of Concept (PoC) represents a significant milestone towards optimizing how businesses can fully benefit from tokenisation, thereby improving liquidity, programmable finance, and real-time settlement on a 24/7 basis.
Integrating AML and Anti-Fraud Capabilities into Tokenised Deposit Transactions
Ant International and HSBC have joined forces to incorporate Ant International’s blockchain infrastructure with Swift’s networks. This integration is designed to facilitate real-time treasury management across borders, leveraging the services of HSBC Singapore and Hong Kong. By adopting a common protocol developed in collaboration with HSBC and Swift, this initiative aims to streamline secure and efficient bilateral arrangements between Ant International and its bank partners.
The combination of tokenisation’s transparency and efficiency with existing payment infrastructures is expected to enhance the safety and compliance of Ant International’s blockchain-based services. Leveraging ISO 20022, the solution will extend HSBC’s AML systems and anti-fraud capabilities into the Tokenised Deposit Service, enabling digital money issuers to utilize ISO 20022 and the Swift network while making it easier for banks and external customers to adopt these solutions during future rollouts. This process also facilitates better interoperability between digital money and traditional fiat money.
As HSBC expands its Tokenised Deposit Service, ensuring seamless interoperability across both emerging blockchain networks and established payment channels becomes crucial. By enabling tokenised deposits to move securely and efficiently across borders, the strategy seeks to provide corporate clients with more options for global liquidity management.
The three parties will continue building on the foundation laid by this PoC while exploring additional pilot tests and use cases for commercial deployment.
