UBS and Ant International to Pilot Blockchain-Based Tokenized Deposits for Instant Cross-Border Payments
UBS and Ant International have signed an MOU in Singapore to pilot blockchain-based tokenized deposits for instant cross-border payments. The partnership uses UBS Digital Cash, launched in 2024 for institutional real-time liquidity management. Ant International will integrate the solution into its Alipay+ ecosystem.
By tokenizing deposit liabilities, corporate treasury teams can settle transfers in minutes, bypassing traditional cut-off times and time zones. Kelvin Li, Global Manager of Platform Technology at Ant International, highlighted blockchain’s potential to transform cross-border payments. Young Jin Yee, Head of UBS Singapore, said the system will enable faster, multi-currency transfers on a private ledger. This project follows industry moves like Franklin Templeton’s integration with the Canton Network. As tokenized deposits gain traction, liquidity management processes become more efficient, transparent and adaptable.
Neutral
The pilot of tokenized deposits by UBS and Ant International represents a significant infrastructure advancement for blockchain-based payments. While it underscores growing institutional adoption of digital cash and tokenized assets, it does not directly affect the market pricing of any specific cryptocurrency. In the short term, it may boost confidence in blockchain payment solutions, but the impact on trading volumes or token values remains limited. Over the long term, improved liquidity management and cross-border payment efficiency could foster greater demand for programmable settlement tokens. However, until these systems integrate with public networks or tokenized assets, the effect on crypto markets is likely to be neutral.