Standard Chartered and Ant launch 24-hour tokenized deposits

• Standard Chartered and Ant activate tokenized deposits to enable non-stop global liquidity.
• Businesses can instantly move Hong Kong dollars, CNH and US dollars between regions without being restricted by banking hours.
• The system will be implemented within the Hong Kong Project Ensemble with active regulatory oversight.

Hong Kong’s Standard Chartered Bank Limited and Ant International have launched a blockchain-based tokenized deposit system that enables real-time fund transfers. This commercial deployment will enable the transfer of value in Hong Kong dollars, Chinese yuan and US dollars between Ant International’s global entities without waiting for traditional banking hours.

The launch follows a test settlement of the Hong Kong dollar completed last year, with Ant International becoming the first client to use the solution commercially. The project is located within the Hong Kong Monetary Authority’s Project Ensemble and Supervisory Incubator for Distributed Ledger Technologies, which supports regulated blockchain experimentation.

As businesses seek faster access to cash across markets, one question is currently at the heart of treasury operations. The question is: Can tokenized deposits replace traditional cross-border payment models?

How the tokenized deposit system works

The system works by converting Ant International token deposits maintained at Standard Chartered, allowing corresponding entities to transfer liquidity almost instantly. Funds are transferred between accounts, avoiding delays in settlement by correspondent banks and delays in the entire processing cycle at the end of the day.

HKD, CNH, and USD are available, allowing treasury departments to manage working capital in different regions without having to deposit money into an account in advance. This arrangement will allow you to send money around the world if you wish, especially when traditional payment channels are still closed.

This method significantly changes the flow of liquidity within a 24-hour multinational company. This setup improves cash efficiency, reduces idle balances, strengthens financial management, and supports 24-hour operations across global subsidiaries and companies around the world. It also improves real-time visibility, reduces operational risk, and improves cross-border capital efficiency.

Whale platform and bank connectivity

The solution runs on Ant International’s Whale platform, a blockchain-based financial management system that also integrates cryptography and artificial intelligence. Whale already connects Ant’s global operations with several major banks, including DBS and HSBC, supporting real-time payments across multiple jurisdictions.

The already established connections facilitated the transition from trial to commercial use of the tokenized deposit system without re-establishing banking relationships. Each transfer is accompanied by an on-chain data record, providing complete transparency of transactions as well as facilitating rapid coordination between markets.

As the network grows, the platform structure will allow for the addition of more banks and currencies. This scalability supports future expansion, regulatory compliance, and growing enterprise demands around the world. We position this platform as the core infrastructure for next-generation global financial operations.

Read more: Standard Chartered launches tokenized deposits on blockchain

Project ensemble role and regulatory framework

This partnership fits into Hong Kong’s broader plans to use tokenization to innovate its cash payments infrastructure through Project Ensemble. Since May 2024, Standard Chartered has been actively participating in the design of the Project Ensemble Sandbox, where testing of use cases for tokenized assets takes place under a regulated environment.

Standard Chartered and Ant International are both members of the Project Ensemble Architecture community, created to accelerate the adoption of tokenization across the financial sector. Mahesh Kini, global head of treasury management at Standard Chartered, said the partnership reflects the growing demand for “just-in-time” liquidity and continuous access to finance.

Kelvin Lee, general manager of platform technology at Ant International, said the solution will enable companies to securely and seamlessly access working capital around the world, improving liquidity management.