HSBC Bank Middle East Limited launched a tokenized deposit service in the United Arab Emirates, adding the dirham to its blockchain-based Orion cash management network. The service enables eligible corporate and institutional clients to move funds instantly across borders and between internal treasury entities on a 24/7 basis, integrating blockchain rails with traditional bank deposits. Mohamed Al Marzooqi, chief executive officer of HSBC UAE, stated the rollout reflects the maturity of the local regulatory environment for digital finance and genuine corporate demand for more capable treasury tools. The launch aligns with the UAE's broader strategy to position itself as a regulated hub for digital finance and financial technology.
HSBC Orion Network Adds Dirham to Multicurrency Blockchain Platform
The new service allows eligible corporate and institutional clients to move funds instantly across borders and between internal treasury entities. The network already supports euros, British pounds, U.S. dollars, Hong Kong dollars and Singapore dollars.
According to HSBC, the service is designed to streamline working capital by removing standard banking-hour constraints for internal transfers, reducing manual processes and providing real-time visibility into global cash positions.
HSBC Executives Cite Regulatory Maturity and Corporate Demand
Mohamed Al Marzooqi, chief executive officer of HSBC UAE, said the rollout reflects both regulatory readiness and market demand.
"The introduction of tokenized deposits to the UAE is a reflection of the maturity of the local regulatory environment when it comes to digital finance and the genuine demand from corporates operating in and through this market for more capable treasury tools," Al Marzooqi said.
Kyle Boag, regional head of global payments solutions for HSBC Middle East, North Africa and Türkiye, said demand for real-time liquidity tools continues to rise.
"The demand for instant, secure, always-on liquidity solutions is only increasing as businesses seek to compete in a globalized and highly digitalised world," Boag said.
HSBC Completed $1.3 Billion Digital Green Bond and UK Gilt Pilot
Before expanding the service into the UAE, HSBC spent several years building out its digital asset infrastructure. The bank powered a $1.3 billion-equivalent multicurrency digital green bond issuance for Hong Kong, which was the largest digital bond offering of its kind at the time.
HSBC also facilitated the European Investment Bank's first digital bond denominated in British pounds. The U.K. government selected Orion, HSBC's proprietary, institutional-grade blockchain platform, as the provider for its sovereign digital gilt instrument pilot program.
Service Available to Eligible Clients Subject to Regulatory Approvals
HSBC said the service is available immediately to eligible clients in the UAE, subject to regulatory approvals and standard onboarding.
FAQ
What did HSBC launch in the UAE?
HSBC Bank Middle East Limited launched a tokenized deposit service in the United Arab Emirates, adding the dirham to its blockchain-based Orion cash management network. The service enables eligible corporate and institutional clients to move funds instantly across borders and between internal treasury entities on a 24/7 basis.
Which currencies does HSBC Orion network support?
The network supports euros, British pounds, U.S. dollars, Hong Kong dollars, Singapore dollars, and now the dirham following the UAE launch.
What prior blockchain projects did HSBC complete?
HSBC powered a $1.3 billion-equivalent multicurrency digital green bond issuance for Hong Kong, facilitated the European Investment Bank's first digital bond denominated in British pounds, and was selected by the U.K. government to provide its sovereign digital gilt instrument pilot program.
