HSBC’s HDSU Named American Banker’s Innovation of the Year in On-Chain Finance

NEW YORK - HSBC today announced that its HSBC DLT Settlement Utility (HDSU) has been named American Banker's Innovation of the Year in the On-Chain Finance category. The award recognizes HSBC's leadership in delivering real-time, blockchain-enabled payments that settle through traditional, regulated fiat infrastructure - without requiring clients to manage cryptocurrency or digital wallets.

HIGHLIGHTS

• HDSU bridges blockchain-based payment initiation with central bank settlement systems, allowing clients to send payments to any bank account in fiat currency - with no intermediary cryptocurrency involved.
• In a six-month client trial, HDSU drove a 50% reduction in payment costs, up to 80% faster invoicing, and quicker deployment of capital.
• HDSU is live today and HSBC is working to scale the solution for broader enterprise use across industries with high payment volumes.

Financial institutions experimenting with blockchain-based payments have long faced a disconnect between digital money and the traditional, fiat-based financial system. While different blockchain networks generally do not interoperate with one another, HDSU was built to close that gap by absorbing the complexity of routing a payment over the best available rail.

"At HSBC, we are continuously harnessing innovative technologies to deliver seamless experiences and tangible value for our clients. This recognition is a testament to our unwavering commitment to client excellence and to pushing boundaries, driving transformation, and leading the way in next-generation solutions," said Preeti Chaturvedi, US Head of Domestic and Emerging Payments. "Large enterprises operating across complex, multi-jurisdiction supply chains want payments that are faster and more transparent while ensuring safety and security that comes with a regulated banking partner. HDSU was built with these client priorities in mind to offer confidence, scale and impact."

We are putting this technology into action across HSBC's target client segments today, where we help clients solve real challenges and unlock new opportunities. Worley, a global professional services company, collaborated with HSBC to pilot HDSU across its vendor payments operations. This case demonstrated the solution's ability to drive efficiency and cost savings at scale within a complex, multinational procurement environment.

"In a promising trial, HSBC's DLT Settlement Utility helped a key Worley business unit to improve how we manage vendor invoices and payments, reducing friction and unlocking efficiencies across a complex global procurement process. We value HSBC as an innovation partner, see the advantage of this payment system and look forward to taking it beyond the initial test group," said Sean Murphy, president of Major Projects and Programs at Worley, a leading global professional services company of energy, chemicals and resources experts.

HSBC is now working to scale HDSU for broader enterprise use, with the aim of reducing cost and risk for industries with high payment volumes and complex, multi-jurisdiction supply chains.

HSBC's recognition in the On-Chain Finance category reflects the bank's broader strategy to modernize payments infrastructure for institutional clients while maintaining the regulatory and settlement standards of the traditional banking system.

Media Inquiries

Elena Connolly, Head of Communications, CIB US

[email protected]