Uber pilots tokenized HSBC deposits to trade Franklin Templeton tokenized money market funds on weekends via blockchain.
RWA & Tokenization ·
Uber is piloting a system to use tokenized deposits from HSBC for trading Franklin Templeton's tokenized money market funds outside standard market hours, according to Bloomberg. The arrangement brings together the ride-hailing platform, the bank, and the asset manager in a blockchain-based investing test.
The pilot leverages tokenization—the conversion of traditional financial assets into blockchain-native tokens—to enable weekend trading activity that would not otherwise be possible through conventional market infrastructure. By issuing deposits as tokens, HSBC creates a digital instrument that Uber can use to purchase Franklin Templeton's tokenized money market fund offerings on a distributed ledger, bypassing the usual constraints of traditional settlement and trading windows.
The scope of the pilot remains to be seen, including its duration, transaction volumes, and whether it will expand to other asset classes or participants. The mechanics of how losses or redemptions would be handled across the blockchain infrastructure have not been disclosed.