Singapore’s Big Three Banks Execute First Live Tokenised Deposit Transactions via Swift

Quick Summary

DBS, OCBC, and UOB have successfully executed Singapore’s first live interbank transactions using tokenised deposits on Swift’s blockchain ledger. This milestone enables round-the-clock payments in SGD and USD, bypassing traditional banking hours to provide instant interbank settlement and enhanced liquidity management for corporate clients.

How do tokenised deposits transform interbank payments?

Tokenised deposits represent a paradigm shift in how value moves between financial institutions. By converting traditional bank deposits into a digital format on a shared-ledger infrastructure, banks can facilitate instantaneous fund transfers that operate independently of legacy processing windows. This pilot demonstrated that 24/7 payment availability is achievable, allowing businesses to transact during weekends and public holidays.

• Round-the-clock operations for corporate treasury and trade.
• Reduced settlement risk through real-time matching and netting.
• Programmable financial services tailored to digital commerce needs.

"In a digital economy, our clients' businesses operate round the clock, and their money should too. Our pilots prove that with tokenised deposits, clients can transact USD and SGD payments any time, any day, including over a weekend." said Rachel Chew, Chief Operating Officer and Co-Head of Digital Assets, Global Transaction Services, DBS.

What is the role of Swift’s blockchain ledger?

Swift’s blockchain-based ledger serves as a secure orchestration layer, connecting disparate tokenised deposit ecosystems across different banks. This infrastructure addresses the interoperability barrier that has historically hindered the adoption of digital money. By matching and netting obligations before final settlement, the ledger ensures seamless fund movement across multiple currencies and time zones.

• Orchestration of obligations between UOB, DBS, and OCBC.
• Interoperability standards for global digital asset adoption.
• Scalable payment solutions for 17 banks across six continents.

"Singapore's first live SGD interbank transactions enabled by bank-issued digital money demonstrate the value of industry collaboration in shaping the future of payments. The initiative provides valuable insights into how shared-ledger technology can unlock new payment capabilities for businesses while maintaining the trust and resilience of today's financial system." said Carmen Chan, Deputy Head of Global Transaction Banking at Singapore’s OCBC.

Why is this a milestone for Singapore’s financial hub?

This successful live trial reinforces Singapore’s status as a global innovation hub for fintech and digital assets. By integrating next-generation infrastructure with the safety of the existing financial system, the "Big Three" banks are setting a benchmark for regional connectivity and cross-border commerce. The expansion from HKD to SGD and USD transactions highlights the versatility of tokenisation in a multi-currency environment.

• First live interbank tokenised transactions in Singapore.
• Expansion across currencies including SGD, USD, and HKD.
• Strengthened regional connectivity within the ASEAN market.

"As the first Singapore-headquartered bank to complete live transactions on Swift's ledger, we have expanded from Hong Kong dollar to Singapore dollar and US dollar transactions beyond traditional banking hours, demonstrating the potential of tokenised infrastructure to enable faster, more seamless movement of funds across markets, currencies and time zones, while supporting Singapore's position as a leading global financial and innovation hub." said So Lay Hua, Head of Group Transaction Banking, UOB.

FF NEWS TAKE:

This isn't just a technical pilot; it is a definitive signal that tokenised deposits are ready for prime time. By solving the interoperability challenge via Swift, DBS, OCBC, and UOB have effectively moved the needle for institutional digital assets. While many talk about blockchain, Singapore is actually building the utility-grade infrastructure required to make 24/7 global finance a reality. This move solidifies the region's lead in the race for programmable money.