HSBC has successfully completed a pilot simulating the issuance, transfer and atomic settlement of its Tokenized Deposit Service (TDS) on the Canton Network, the blockchain company announced today, April 13, on X.
During the controlled test, HSBC’s Global Payments Solutions division simulated the transfer of tokenized deposits and their atomic settlement with other digital assets on Canton-compatible applications. The pilot aims to demonstrate interoperability between settlement rails, a feature that HSBC says is critical to scaling digital financial markets.
The pilot builds on the broader rollout of HSBC’s TDS, which allows corporate customers to convert fiat deposits into digital assets and instantly transfer them to HSBC’s general ledger, the press release said. The service supports USD, GBP, EUR, HKD and SGD and is designed to enable 24/7 real-time settlement and programmable payments for liquidity management use cases.
Canton is run by Digital Asset, which last year raised $135 million in a strategic funding round co-led by DRW and Tradeweb, which also included BNP Paribas, Citadel Securities and The Depository Trust & Clearing Corporation (DTCC). The company has raised nearly $600 million in nine funding rounds since its founding in 2014.
HSBC’s pilot adds to a growing list of institutional deployments in Canton in recent months. In January, JPMorgan’s Digital Asset and Kinexys unveiled plans to issue the bank’s own deposit token, JPM Coin, natively on the network.
Weeks before that, the DTCC announced a pilot to mint a subset of government bonds on Canton, a layer 1 designed for banks and financial infrastructure.
Canton describes itself as a “public blockchain” with configurable privacy, a claim that has sparked resistance in cryptocurrency circles. Critics argue that Canton’s validator admissions process, which requires newcomers to receive a two-thirds vote of incumbent validators, makes this inherently permissible, regardless of how the team and marketing message frames it.
Canton’s native CC token is currently trading at around $0.15, with a market cap of around $5.78 billion, up almost 5% in the last 24 hours.
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