Tokenized Deposits Enable Weekend Cross-Border Payments
DBS and Citi completed a US dollar cross-border payment between Singapore and the United States in minutes over a weekend using tokenized deposits on Swift’s digital ledger. Traditional cross-border payments can take up to two business days.
The transaction, completed on 5 September, was the second confirmed real-time use of Swift’s ledger. HSBC and Standard Chartered completed the first tokenized-deposit transfer in August. Swift opened the ledger for initial use on 9 July, while 17 banks prepare to join its pilot. DBS is the only Asia-headquartered bank among the 12 core design-group members.
The trial connects existing bank infrastructure with blockchain-based networks and supports tokenized deposits, programmable payments and 24/7 settlement. DBS launched its Token Services in 2024. The transaction did not use a public cryptocurrency, so its immediate effect on crypto prices is likely limited. However, wider adoption could strengthen institutional blockchain infrastructure and improve cross-border payment efficiency over the long term.
Neutral
The payment used regulated bank deposits rather than a public cryptocurrency, so it provides no direct demand, supply or liquidity catalyst for major crypto assets. Short-term crypto traders are therefore unlikely to see a meaningful price reaction, although blockchain and payment-related stocks or tokens could receive limited sentiment support.
Over the long term, the successful weekend settlement demonstrates that tokenized deposits can improve speed, programmability and 24/7 access in cross-border payments. Swift’s expanding pilot and participation from 17 banks may encourage institutional adoption of blockchain infrastructure. However, bank-led tokenized deposits may compete with, rather than directly increase demand for, public cryptocurrencies. The overall price impact on crypto markets is therefore expected to remain neutral.