Citi, DBS complete first weekend tokenized cross-border deposit on Swift
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
DBS and Citi completed the first weekend tokenized cross-border payment between Singapore and the US using tokenized deposits on the Swift Digital Ledger. The transaction was finalized in minutes, improving significantly on the usual two business days for traditional transfers. This effort showcases how traditional banks are exploring blockchain technology to enhance cross-border payment efficiency while keeping deposits within banking channels.
Why it matters
According to DBS, this development matters because it bypasses the limitations of traditional banking hours and speeds up cross-border payments, demonstrating the potential for blockchain to improve banking operations. The source does not explicitly elaborate on broader market or policy impacts.
Key context
Swift’s blockchain-based ledger was announced ready for initial use in July and is being piloted by 17 major banks including Citi and DBS. Standard Chartered and HSBC completed the first tokenized cross-border transaction on this ledger in August. Separately, DBS and JPMorgan have plans to develop a tokenization framework for cross-bank payments by 2025. Citi is also part of a group planning a tokenized deposit network in the US, targeting rollout in 2027.
Key numbers and entities
Entities involved include DBS (Singapore-based financial group), Citi (American financial services giant), Swift (the largest financial messaging network), Standard Chartered, HSBC, JPMorgan, BNP Paribas, UBS, ANZ, and The Clearing House. The transaction took minutes compared to up to two business days traditionally. No specific monetary amounts were provided.
What remains unclear
The source does not specify the exact amount or currencies involved in the transaction, nor does it clarify the detailed mechanics of the tokenization process used. It also does not provide information on how widely this technology will be adopted or what regulatory changes might be needed.