Last year, as part of Hong Kong e-HKD Pilot program, Visa collaborated with HSBC and Hang Seng Bank on a tokenized deposit trial. It involved two use cases, one for the settlement of a high value real estate transaction and another for settling Visa card payments. Last week it published a report on the trial.
“Tokenized deposits allow commercial institutions to bring efficiency to existing settlement processes and innovate new use cases,” said Vincent Lau, Global Head of Digital Money, Global Payments Solutions, HSBC. “Realizing these benefits will require further development of interoperability between tokenized deposits from different banks.”
Visa said the trials involved an early version of its tokenized deposit solution. Hence, while programmability is one of the key benefits of tokenized deposit payments, the experiments emphasized the core interbank payment functionality. In Hong Kong there are restrictions on faster payment amounts, so the real estate transaction supported a high value instant payment with tokenized deposits.
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.
