Banks Explore Stablecoins and Tokenized Money

Recent announcements from banks, an asset manager and central banks illustrate continued interest in stablecoins, tokenized deposits and blockchain-based fund shares. A global bank rolled out a stablecoin to retail users, an asset manager added tokenized fund shares, a US bank launched a tokenized deposit and two more central banks joined a cross-border stablecoin initiative.

HSBC rolls out a Hong Kong dollar stablecoin

According to the cited report, HSBC announced a Hong Kong dollar stablecoin initiative involving its PayMe app. The Block reported that “Hong Kong’s HSBC has launched its HKD stablecoin, RedCoin, available from Friday via PayMe.”

Franklin Templeton adds $150 million of tokenized fund shares

A report described approximately $150 million in additional tokenized fund shares associated with Franklin Templeton on the XRP Ledger. CoinDesk reported that “Franklin Templeton added about $150 million in shares of its tokenized money market fund to the XRP Ledger, bringing the network’s total to nearly 193 million shares worth about $200 million.” A single blockchain wallet does not, by itself, establish the number or identity of beneficial owners.

SoFi launches a tokenized deposit

SoFi announced a tokenized deposit product, described in its release as SOFIE. According to the release, “SOFIE is a tokenized deposit representing a deposit liability of SoFi Bank, N.A., Member FDIC.”

Singapore’s BLOOM initiative

A report described participation by Malaysian and Thai central-bank authorities in Singapore’s BLOOM initiative concerning potential cross-border uses of stablecoins and tokenized deposits. The Monetary Authority of Singapore announced that Bank Negara Malaysia and Bank of Thailand “have joined the BLOOM (Borderless, Liquid, Open, Online, Multi-currency) initiative as policymaker members.” Participants include Mastercard, Visa, Ripple and the World Bank Group.

Why it matters

Taken together, these moves show regulated banks and asset managers putting familiar instruments, including cash, deposits and money market fund shares, onto blockchain rails. Tokenization can change how rights or interests are represented, transferred and settled, but the legal rights, redemption mechanics, custody, counterparty exposure and regulatory treatment depend on the specific structure.

For investors, the practical questions are the same ones that apply to any digital asset: who issues the token, what backs it, who controls the keys and which rules apply in each jurisdiction.

Disclaimer. Abra Capital Management, LP (“ACM”) is an SEC-registered investment adviser. Registration does not imply a particular level of skill or training or approval or endorsement by the SEC. “Abra” is a brand used by affiliated entities that provide different products and services. This article does not provide individualized investment advice. Third-party information in this article has been obtained from sources ACM believes to be reliable, but ACM has not independently verified it. Digital assets involve risk, including loss of principal.

Published October 29, 2026