Standard Chartered has introduced tokenized deposits in Hong Kong for corporate clients, marking another step toward integrating blockchain technology into traditional banking. Tokenized deposits represent bank-held money in digital form, potentially enabling faster and more programmable financial transactions. The launch highlights how established financial institutions are moving beyond crypto experimentation and exploring blockchain-based infrastructure for everyday banking services. It also reinforces Hong Kong’s growing role as a hub for institutional digital-asset innovation.
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How Payments Companies Can Regain Investor Confidence
The broad repricing of payments has altered what investors are willing to reward. As sector growth slows and long-standing tailwinds fade, investors are looking more closely at the underlying sources and economics of growth. Divergence in shareholder returns across different payments segments shows the scale of that shift.
Three developments are especially noteworthy:
Underlying performance is becoming easier to see. For years, an expanding pool of addressable transactions, low inflation, and the e-commerce boom lifted revenues throughout the sector, enabling many companies to expand without taking meaningful market share. Successive rounds of consolidation added another layer of activity, making it harder to distinguish organic performance from acquisition-driven growth. As those trends abate, investors can more readily distinguish businesses that are gaining share from those ceding it. Across most payments segments, a small number of share takers are pulling away from a much larger group whose members face structural challenges.
Volume growth alone is no longer enough. Transaction-based revenue remains central to the payments industry, including many vertical software acquirers. But investors are discounting growth driven primarily by processing volume and instead placing greater value on revenue supported by deeper customer engagement and higher switching costs. Companies can build these more protected revenue streams by attaching multiple products to a transaction, creating network effects, or playing a broader role in optimizing transaction activity end to end.
Costs are growing faster than revenue. Operating expenses have risen by 9% annually over the past three years, compared with revenue growth of 7%. As sector growth slows from high single digits to mid-single digits, stubbornly high cost bases threaten to push margins into reverse. Structural complexity, driven by fragmented technology platforms and geographically dispersed operations, is a major factor. Higher wages and increased spending on technology add to the pressure.
Payments leaders can still command premium valuations, but companies today must demonstrate durable revenue quality, operational focus, and operating leverage to prove that they can sustain profitable growth.
Curated News
💳 Payments
Tencent and Visa Partner on Cross-Border Payments and AI
Tencent and Visa have announced a partnership focused on cross-border payments and artificial intelligence. The collaboration points to growing efforts to improve international payment experiences through technology and expanded financial connectivity. Source
Thunes and UnionPay International Transform Payments to China’s Mainland, Launching High-Capacity Instant Payouts
Thunes and UnionPay International are introducing high-capacity instant payouts to mainland China. The initiative aims to strengthen cross-border payment infrastructure and make international transfers into the Chinese market faster and more efficient. Source
XTransfer and Bank of China (Hong Kong) Announce Partnership at Hong Kong FinTech Week
XTransfer and Bank of China (Hong Kong) have announced a partnership during Hong Kong FinTech Week. The collaboration highlights continued efforts to strengthen financial services and payment solutions for businesses operating across borders. Source
ING Adds Travel eSIMs to App
ING is expanding its mobile banking app with travel eSIM services, bringing connectivity features into its digital banking ecosystem. The move reflects the growing trend of banks offering lifestyle and travel services alongside traditional financial products. Source
🏦 Banking
Ant International Completes Real-Time Cross-Bank Tokenised Deposit Transfers Under HKMA’s EnsembleTX
Ant International has completed real-time transfers of tokenised deposits between banks under the Hong Kong Monetary Authority’s EnsembleTX initiative. The development demonstrates progress toward connecting different financial institutions through tokenised money infrastructure and improving the interoperability of digital financial transactions. Source
Ant International, Banks Complete HKD Token Transfers
Ant International and banking partners have completed Hong Kong dollar token transfers, signalling further progress in the development of tokenised payment infrastructure. The initiative adds to the growing experimentation with digital representations of fiat currency in institutional financial services. Source
Eurex Clearing to Become the World’s First Hybrid CCP
Eurex Clearing is preparing to become the world’s first hybrid central counterparty clearing house. The development signals an evolution in financial market infrastructure, potentially bringing together traditional clearing systems and newer digital technologies. Source
UK Moves Closer to Launching First Digitally Native Government Bond
The UK is moving toward the launch of its first digitally native government bond. The initiative represents an important step in exploring how distributed ledger technology could modernise sovereign debt issuance and securities markets. Source
💼 Fintech
HSBC to Open Hong Kong AI Institute Following Singapore Launch
HSBC plans to establish an AI institute in Hong Kong following its launch in Singapore. The expansion highlights the bank’s continued investment in artificial intelligence and its potential applications across financial services. Source
Goldman Sachs Bars Bankers From Using Claude Code and GitHub
Goldman Sachs has reportedly restricted bankers from using Claude Code and GitHub. The development highlights the challenges financial institutions face when balancing the productivity benefits of AI-powered development tools with internal security and compliance requirements. Source
TwentyCi Unveils Opportunity Signals to Help Mortgage Advisers Win Back Business From Moving Clients
TwentyCi has introduced Opportunity Signals, a tool designed to help mortgage advisers identify opportunities among clients who are moving homes. The product aims to help advisers reconnect with potential customers and strengthen business retention. Source
🪙 Crypto
Tokenization Firm tZERO Plans to Go Public in $350 Million SPAC Deal
Digital asset tokenization company tZERO plans to go public through a $350 million SPAC transaction. The proposed deal reflects continued efforts by digital asset infrastructure companies to access public markets and expand their operations. Source
NYSE Tokenized Stock Plans Take Shape as Four More Transfer Agents Join
The NYSE’s tokenized stock plans are gaining momentum, with four additional transfer agents joining the initiative. The development points to growing industry partiservices.in exploring blockchain-based securities infrastructure and the potential modernisation of shareholder services. Source
Wirex Appoints Lord Ranger of Northwood as Board Adviser Ahead of New UK Digital Asset Rules
Wirex has appointed Lord Ranger of Northwood as a board adviser ahead of upcoming UK digital asset regulations. The appointment highlights the importance of regulatory expertise and strategic leadership as crypto-focused businesses prepare for an evolving compliance environment. Source
Crypto.com to Shut Hong Kong App in February 2027
Crypto.com plans to discontinue its app in Hong Kong in February 2027. The move marks a change in the company’s local operations as digital asset businesses continue navigating different regulatory environments across markets. Source
📈 Investment
Kipp Acquired by Investor Group Led by Lifetime Value Company (LTVCo) to Accelerate US Expansion and Help Card Issuers and Merchants Recover Declined Transactions
Kipp has been acquired by an investor group led by Lifetime Value Company. The acquisition is intended to support its US expansion and strengthen its services for card issuers and merchants seeking to recover declined transactions. Source
PE Firm CD&R Targets Buyout of $40bn Global Payments – FT
Private equity firm Clayton, Dubilier & Rice is reportedly targeting a buyout of Global Payments, valued at approximately $40 billion. A transaction of this scale would represent a major development in the payments industry and could reshape the company’s ownership and strategic direction. Source
SoftBank-Backed OPay Priced Its IPO, but Isn’t Going Public
SoftBank-backed OPay has reportedly priced its IPO but is not proceeding with a public listing. The development highlights the complexity of IPO plans and the strategic decisions fintech companies face when considering access to public markets. Source
London-Based LO Raises $12M Series A to Expand Its 24/7 Trading Infrastructure Across the US and Asia
London-based LO has raised $12 million in Series A funding to expand its round-the-clock trading infrastructure across the US and Asia. The investment will support the company’s international expansion and development of trading services.Source
⚖️ Regulation
ASIC Is Not Betting on Prediction Markets for Retail Clients
Australia’s securities regulator, ASIC, has expressed a cautious position toward prediction markets for retail clients. The issue highlights the regulatory uncertainty surrounding these platforms and the challenges of determining how they should be treated under existing financial and gambling frameworks. Source
ECB Reveals Network Service Providers for Proposed Digital Euro
The European Central Bank has revealed the network service providers selected for the proposed digital euro. The announcement marks another step in developing the infrastructure required to support a potential central bank digital currency. Source
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