Uber Uses HSBC Tokenized Deposits to Add 1.5 Days of Yield
RWA Signal Insight
HSBC, Franklin Templeton, and the Canton Network successfully completed a pilot program demonstrating the efficiency of tokenized deposits for corporate treasury management. Uber participated in the trial by utilizing HSBC tokenized deposits to purchase shares in the Franklin Templeton OnChain U.S. Government Money Fund. By leveraging blockchain-based settlement, Uber captured approximately 1.5 days of additional yield that would typically be lost during standard weekend settlement cycles. The pilot utilized Tradeweb for market access and Fireblocks for secure infrastructure, proving the feasibility of near-instantaneous cross-platform transactions. This development highlights a significant shift in how corporations can optimize idle cash by integrating tokenized assets directly into their payment workflows. HSBC plans to expand these capabilities to a broader range of U.S. customers and incorporate additional investment options beyond the current money market fund. Industry experts anticipate that hundreds of companies will adopt similar tokenized treasury strategies within the next 18 months to maximize capital efficiency.
Key points
- Uber gained 1.5 days of extra yield using HSBC tokenized deposits for fund purchases.
- The pilot utilized the Canton Network for liquidity and settlement between institutional partners.
- HSBC plans to expand tokenized treasury services to more U.S. clients and investment products.
- Fireblocks and Tradeweb provided the technical infrastructure for the cross-platform transaction trial.
Background
HSBC is a global banking institution that has been actively testing blockchain-based payment solutions, including tokenized deposits. The Canton Network is a privacy-enabled, interoperable blockchain network designed specifically for institutional financial markets to facilitate atomic settlement and asset tokenization.