DBS and Citi partner to enable instant cross-border USD payments with tokenized deposits
DBS and Citi have successfully executed the first cross-border USD payment between Singapore and the United States using tokenized deposits on the Swift Digital Ledger. This transaction, completed over a weekend, bypassed traditional banking hours and settled in minutes, significantly improving upon the standard two-day industry norm. By leveraging blockchain-powered infrastructure, the banks aim to provide corporate treasurers with enhanced liquidity management and the ability to move capital across time zones instantaneously. This development addresses the growing demand for 24/7 financial services in Asia, where outbound cross-border payments are projected to reach $24 trillion by 2033. The collaboration highlights a shift from experimental blockchain pilots to real-world institutional adoption of tokenized money. DBS, which previously launched its own DBS Token Services and Treasury Tokens, remains a key participant in the Swift digital ledger core design group. This milestone underscores the broader industry trend of integrating traditional cash management with interoperable digital networks to increase global financial resilience.
- DBS and Citi completed a cross-border USD payment in minutes via Swift Digital Ledger.
- Transaction occurred over a weekend, eliminating traditional banking hour constraints.
- Asia's outbound cross-border payments are projected to grow to $24 trillion by 2033.
- DBS is one of 12 banks in the Swift digital ledger core design group.
Tokenized deposits represent digital claims against a commercial bank, recorded on a distributed ledger rather than traditional internal ledgers. They function as a programmable form of money that allows for atomic settlement and 24/7 availability, bridging the gap between legacy banking systems and blockchain-based financial networks.