Standard Chartered and HSBC complete first tokenised deposit transaction, Citi launches near-real-time custody solutions
Infrastructure
Standard Chartered and HSBC have successfully completed the first live cross-border transaction using tokenised deposits via Swift’s blockchain-based ledger. This milestone test demonstrated interoperability between two distinct bank-issued tokenised deposit infrastructures, utilizing Swift’s ledger to match and net obligations before final settlement. By reconciling obligations from different banks through a shared infrastructure layer, the test proves that existing banking systems can support tokenized assets without requiring entirely new settlement rails. Simultaneously, Citi launched Custody+, a suite of digital tools designed to provide institutional clients with near-real-time access to custody data and asset servicing workflows. These developments represent a significant step in integrating blockchain-based tokenization into traditional institutional banking frameworks. While the Swift test focused on cross-border deposit interoperability, Citi’s initiative enhances the operational efficiency of managing global portfolios. Together, these advancements highlight the growing institutional focus on leveraging distributed ledger technology to modernize legacy financial infrastructure.
Key points
- ▸Standard Chartered and HSBC tested cross-border tokenized deposit interoperability using Swift’s blockchain ledger.
- ▸Citi launched Custody+ to provide institutional clients with near-real-time custody data and asset servicing.
- ▸The Swift test successfully matched and netted tokenized deposit obligations between two separate bank infrastructures.
Background
Tokenized deposits are digital representations of fiat currency held in a bank account, issued directly by the bank on a blockchain. They allow for programmable, near-instant settlement of financial transactions while maintaining the regulatory and legal framework of traditional commercial bank money.
Relevance
8.5/10