Core Insights - HSBC is set to expand its tokenized deposit services to corporate clients in the U.S. and UAE starting next year, building on existing services in Hong Kong, Singapore, the UK, and Luxembourg [2][4] - The tokenized deposit service allows clients to transfer money instantly, both locally and internationally, enhancing liquidity and settlement efficiency for corporate treasuries [2][6] - The rise of tokenized deposits aligns with increasing demand for real-time liquidity and 24/7 settlement systems in cross-border commerce, which is currently hindered by lengthy settlement times and fees [6][4] Industry Context - The expansion of HSBC's services comes amid a broader trend where banks are exploring digital assets to improve payment processes, particularly following the introduction of the GENIUS Act in the U.S. that sets new rules for stablecoins [4][6] - Tokenized deposits are defined as digital representations of bank deposits, fully regulated and backed by the bank's balance sheet, distinguishing them from non-bank issued stablecoins [5][4] - The implementation of tokenized deposits may provide a viable path to digital cash without necessitating a complete overhaul of the existing banking system [7]