Real-Time Payment Innovation: HSBC on Blockchain, Tokens, and Cross-Border Transfers

Multinational companies say distributed-ledger payment systems can lower friction, while giving them programmable control over how funds are released and routed.

Technology that accelerates the movement of money also broadens choices for paying suppliers and employees across countries and helps support core finance operations.

Tom Halpin, head of Global Payments Solutions for North America at London-based HSBC, discussed the rise of instant clearing and cross-border innovation in an April 15 conversation. He is based in New York.

Earlier this month, HSBC extended its tokenized deposits offering to the United States, enabling around-the-clock cross-border transfers on a blockchain. The capability is also live in Hong Kong, Singapore, Luxembourg, and the United Kingdom, supporting major currencies including the euro, the pound, and the dollar.

Last month, Swift, the global financial-messaging cooperative, finalized the design of a blockchain-powered shared ledger and began developing an initial version to support tokenized transactions.

Real-time payments are electronic transfers that clear and settle within seconds, with funds available to the recipient immediately and confirmation returned to the sender. Unlike batch-based systems, these rails typically run 24/7/365 and are designed for always-on processing.

In a typical real-time transaction, a payer initiates a credit transfer in online banking or an API-connected corporate system; the payer’s bank validates the request and sends it to the network’s clearing infrastructure; the payee’s bank posts the funds and sends an acceptance message back. Settlement is designed to be final, with participating banks funding positions through a central settlement arrangement so the credit is not “pending.”

Not every fast-looking transfer uses a real-time rail. Zelle, for example, can make funds appear quickly for consumers, but it is primarily a messaging and directory service between banks, with interbank settlement commonly occurring later through established bank-to-bank mechanisms.

Compared with Automated Clearing House transfers, which are usually processed in batches on business schedules (including same-day windows), real-time rails provide immediate availability and confirmation at any time. Wire transfers can also be fast and final, but they tend to be higher-cost and are generally limited to banking hours and specific networks.

In the United States, two major instant-clearing options are The Clearing House’s Real-Time Payments network and the Federal Reserve’s FedNow Service. Both are built for 24/7 processing, while wires remain the standard for certain high-value or time-critical corporate moves.

Participating institutions vary by rail, but the Real-Time Payments network is supported by a large and growing set of banks and credit unions, including many large national banks as well as regional institutions through their service providers.

Common benefits include faster confirmation, improved cash-position visibility, and the ability to run payments outside the traditional banking day. Typical use cases range from payroll and insurance disbursements to bill payments, consumer-to-consumer transfers, and business-to-business supplier payments.

Security depends on strong controls rather than speed alone: sender authentication, account validation, transaction monitoring, and clear user prompts matter because many real-time credits are difficult to reverse once accepted.

Real-time payment rails can be highly reliable, but their speed increases the importance of strong authentication and fraud controls because errors are harder to unwind.

Globally, similar instant schemes operate in multiple regions, including major domestic networks in the United Kingdom, Europe, India, Brazil, and Singapore, even if interoperability across borders is still evolving.

Editor’s note: This interview was condensed and clarified.

Client Demand for Instant, Cross-Border Transfers: Where Is Momentum Strongest?

Tom Halpin: It’s truly global. Corporate treasury now operates from multiple hubs, often offshore, and needs to move money across markets despite time-zone gaps to make the working day go further and manage balances. We see all types of clients—some directing funds into the United States, others pushing dollars to different jurisdictions based on how they run their businesses.

Which Industries or Regions Are Advancing Token Use Faster?

There is plenty of discussion, but it’s difficult to gauge who is ahead with live, scaled solutions carrying real transaction flow. Global banks are active, and many fintechs are vocal, but the critical questions are about genuine connectivity, volume, and how well they solve the last-mile delivery challenge.

United States Adoption of Real-Time Payments: What Slows the Shift?

One point that’s often missed: widespread adoption is led by corporates more than by banks. If a company pays through an enterprise resource planning system or treasury management system that already produces a familiar file format delivered over an API, it may not rush to a new format. Moving to instant rails also requires changes in back-office processes.

Previously, teams didn’t consider receiving a payment on a Saturday and immediately applying it to an open balance to avoid late fees or credits. That creates internal workflow updates. So this isn’t only about banks enabling the capability—it’s about a clear business case from the corporate perspective.

When Could Instant Payments Become the Norm in the United States?

A major catalyst will be how strongly regulators encourage migration away from paper checks, which would nudge volumes toward immediate clearing. Consumers accustomed to peer-to-peer apps replaced what once was cash or checks. Wholesale behavior is different; businesses move faster when they fear losing a competitive edge.

In my view, as companies reassess their technology stack, that’s when shifts occur—moments when they say, “This is the right time to explore instant rails and see how we can use them.”

What Forces Are Powering Faster Settlement and Always-On Processing?

E-commerce runs on an extended business clock, creating demand for higher-velocity payments.

• Lower fees and operational expense.
• Smoother end-to-end processing.
• Quicker international money movement.
• Stronger cash-position management.

Compared with years past, organizations now start with real business problems and see this technology as a practical way to address them across a modern payment network.

Cross-Border Tokens and Stablecoins: How Will They Interoperate?

Success will hinge on interchangeability—whether a coin issued by Bank A can be converted to Bank B’s coin and back again. Interoperability and ubiquity, much like legacy payment rails, will be essential. The hurdle is getting enough institutions onto that utility to enable true coin-to-coin interoperability—a challenge also seen with instant networks.