Ant International and HSBC have started to test a new cross-border payments solution using tokenised deposits on Swift’s network and powered by ISO 20022.
Following this announcement, the initiative is expected to leverage Swift’s global messaging network and HSBS’s Tokenised Deposit Service, combined with Ant International’s secure and efficient blockchain technology.
In addition, the POC marks an important step in Ant International, HSBC, and Swift’s efforts to optimise the manner in which businesses unlock the full benefits of tokenisation for improved liquidity, programmable finance, and 24/7 real-time settlement.
Extending AML and anti-fraud capabilities to tokenised deposit transactions
According to the official press release, Ant International and HSBC integrated Ant International’s in-house blockchain infrastructure with Swift’s networks, aiming to enable real-time treasury management across borders through the use of HSBC Singapore and Hong Kong, by leveraging HSBC’s Tokenised Deposit Service. At the same time, by introducing a common protocol co-built with HSBC and Swift, this initiative is set to remove the need for Ant International to establish secure and efficient individual bilateral arrangements with its bank partners, improving Ant International's ability to leverage banks and financial institutions’ tokenised deposit solutions.
Furthermore, through the process of combining the transparency and efficiency of tokenisation with the overall scale and security of existing payments infrastructure, the integration with Swift’s network is expected to optimise the safety and compliance of Ant International’s blockchain-based service. Being powered by ISO 20022, the solution is set to extend HSBC's existing AML systems, anti-fraud capabilities, and infrastructure into the Tokenised Deposit Service, giving digital money issuers the possibility to leverage ISO 20022 and the Swift network, while also enabling easier adoption by banks and external customers during its future rollout. This process will also allow further interoperability between digital money and traditional fiat money.
As HSBC expands its Tokenised Deposit Service, this initiative aims to ensure interoperability across both emerging blockchain networks and established payment rails is critical. Furthermore, by enabling tokenised deposits to move securely and efficiently across borders, the strategy aims to give corporate clients more choice in the way in which they manage liquidity globally.
The three parties are expected to continue to build on the groundwork of the POC, while also exploring future pilot tests and use cases for commercial deployment.
