DBS and Citi complete first weekend tokenized cross-border payment via Swift

Tokenized deposits accelerate settlement

Both DBS and Citi utilized tokenized deposits through the Swift Digital Ledger. This approach allowed them to avoid the constraints of standard banking hours and drastically reduce the settlement time, which typically takes up to two business days when using conventional cross-border transfer methods.

DBS described this rapid settlement as a significant advancement in the banking sector, affirming that tokenized deposits have the potential to fundamentally enhance efficiency for institutional payments.

The settlement was completed within minutes, a significant improvement over the industry norm of up to two business days for cross-border payments.

Banks adopt blockchain rails for efficiency

The transaction marks a continued trend of major banks using blockchain-based solutions to streamline cross-border settlements while retaining customer deposits inside established banking networks. Standard Chartered and HSBC completed a similar tokenized cross-border transaction using Swift’s blockchain ledger in August, making them early adopters of this technology.

In July, Swift, recognized as the world’s largest financial messaging network, confirmed its blockchain-based ledger’s readiness for real-world application. The company is preparing to pilot tokenized cross-border payments with 17 major international banks. Besides Citi and DBS, participating banks include HSBC, BNP Paribas, UBS, ANZ, and Standard Chartered.

Mini dictionary: Swift Digital Ledger, a blockchain-based system developed by Swift to provide secure and instant cross-border payment settlement between banks, leveraging tokenized assets.

Wider adoption and industry initiatives

Citi, recognized as one of the largest US financial institutions, is also part of a consortium of US banks planning to launch a separate tokenized deposit network in the first half of 2027. This upcoming network will be operated by The Clearing House, a bank-owned payments operator, as reported by CEO David Watson in June.

In November 2025, DBS and JPMorgan announced a joint effort to build a blockchain-based tokenization framework, aiming to enable onchain transfers between their deposit token ecosystems. Their initiative is intended to help set an industry standard for secure and efficient cross-bank payments using blockchain technologies.

These developments reflect the growing interest among major financial institutions in integrating blockchain rails to advance global payments infrastructure.