Mashreq, Citi run tokenised payment on Swift

Mashreq and Citi have successfully executed a live cross-border transaction using tokenised deposits on Swift’s blockchain-based ledger. This pilot utilizes Swift’s infrastructure as a shared orchestration layer to link tokenised deposits issued by individual banks, aiming to streamline international payment friction. By integrating these digital assets into existing financial messaging frameworks, the initiative seeks to enable 24/7 real-time liquidity movement and settlement. Seventeen banks are currently participating in this MVP phase, which follows a broader design effort involving over 40 financial institutions. The project highlights a shift toward using regulated bank liabilities rather than public digital assets to maintain strict compliance and governance standards. For corporate clients, this development promises improved treasury operations and greater flexibility in managing working capital across global time zones. This milestone is significant for the RWA market as it demonstrates how traditional banking institutions can leverage distributed ledger technology to modernize legacy cross-border payment systems.