BNP Paribas and Ant International are collaborating on several fronts for international payments. One area involves exploring tokenized deposits for global treasury management.
Ant has been working on its tokenized deposit solution, Whale, mainly in Hong Kong with the likes of HSBC. Last year it participated in Hong Kong Monetary Authority (HKMA) trials as part of the Fintech Supervisory Sandbox. It will also take part in Project Ensemble trials, an HKMA initiative exploring wholesale CBDC, with one of the CBDC’s purposes being to settle interbank transactions for tokenized deposits.
Tokenized deposits represent bank accounts on a blockchain. That’s comparatively straight forward for payments between branches of a single bank, but is more complex for interbank payments. While stablecoins involve a single token transfer, many tokenized deposit designs require an additional interbank payment, either done in the conventional manner or with a wholesale CBDC.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
