Ant and HSBC Team on Cross-Border Tokenized Deposit Transfers

Core Insights - Ant International, HSBC, and Swift have successfully tested a new cross-border payment solution utilizing tokenized deposits and ISO 20022 messaging standards, marking a significant milestone in enhancing liquidity and real-time settlement for businesses [2][4]. Group 1: Technology and Standards - The initiative leverages Swift's global messaging network, HSBC's tokenized deposit service, and Ant's blockchain technology to facilitate cross-border transfers [2]. - The transition from the MT messaging standard to the XML-based ISO 20022 format is described as one of the most significant data migrations in modern finance, improving the structure and clarity of payment data [5][6]. Group 2: Benefits and Features - The integration of ISO 20022 with blockchain technology is expected to provide enhanced value through improved payment processing speed, anti-money laundering (AML) measures, and regulatory compliance [4][3]. - The new system allows for easier adoption by banks and external customers, promoting interoperability between digital and traditional fiat currencies [5]. Group 3: Industry Impact - The shift to ISO 20022 is anticipated to enable automated screening, straight-through processing, and harmonized reporting, addressing the limitations of the previous MT standard [7]. - A key consideration for CFOs during this transition is whether their banks and systems are fully utilizing the capabilities of ISO 20022, as many institutions may still rely on legacy formats [7].