UOB, HSBC complete live tokenized deposit transfer on Swift blockchain
UOB has become the first Singapore-headquartered bank to execute live cross-border transactions using Swift’s blockchain-based ledger, following an initial pilot by HSBC and Standard Chartered. The Swift platform functions as an orchestration layer that connects disparate tokenized deposit systems, facilitating the netting of interbank settlements rather than processing the payments directly. By utilizing this infrastructure, banks can manage client payments through tokenized deposits while streamlining the settlement process between institutions. UOB intends to expand its usage of the ledger to include Singapore dollar and US dollar transactions starting in September. Notably, the bank plans to extend the platform's utility beyond cross-border payments to include domestic interbank transactions. This development signals a shift toward using blockchain orchestration for broader liquidity management and 24/7 payment capabilities. The integration of major financial institutions into Swift’s ledger highlights the growing institutional adoption of tokenized deposits for efficient global and domestic clearing.
- ▸UOB completed live cross-border Hong Kong dollar transactions on Swift’s blockchain ledger.
- ▸Swift’s ledger acts as an orchestration layer for netting interbank settlements between tokenized deposits.
- ▸UOB plans to expand to Singapore dollar and US dollar transactions in September.
- ▸The platform is being tested for domestic interbank payments beyond its original cross-border scope.
Swift is the global provider of secure financial messaging services used by thousands of banks worldwide. Its blockchain-based ledger initiative aims to solve the fragmentation of tokenized deposits by providing a unified orchestration layer that allows different banks to settle transactions efficiently without replacing existing RTGS or correspondent banking systems.