DBS and Citi have successfully executed a cross-border payment in USD between Singapore and the United States on a weekend, utilizing tokenized deposits. This transaction, which took mere minutes, vastly contrasts with the typical processing time of one to two business days for international transfers.
The payment took place on September 5 via the SWIFT Digital Ledger blockchain infrastructure, enabling the operation to be conducted on a Saturday when conventional banking systems do not typically facilitate cross-border transactions.
This development signifies that businesses can now transfer dollar liquidity between countries and entities around the clock. DBS emphasizes that this mechanism is particularly crucial for companies in sectors that operate continuously, such as e-commerce and digital services.
The solution relies on tokenized deposits rather than stablecoins. Bank funds are represented digitally on a shared distributed infrastructure, while final settlements maintain a connection to the existing banking system. Citi noted that this approach aims to combine the rapidity of blockchain transactions with the regulated framework of traditional finance.
For DBS, this represents a continuation of its strategy in tokenized money. In 2024, the bank launched DBS Token Services, a suite of blockchain services for instant and programmable transfers, including DBS Treasury Tokens for managing treasury liquidity. DBS is also part of a consortium of 12 banks involved in developing the SWIFT Digital Ledger architecture.
Citi is similarly advancing its infrastructure through Citi Token Services and a 24/7 USD Clearing system. The bank has already conducted pilot transactions with First Abu Dhabi Bank and OCBC, with DBS now joining the SWIFT initiative. The pilot phase is scheduled from July to December 2026.
According to DBS, the adoption of tokenized money could enhance liquidity management and mitigate currency risks. The bank references a forecast indicating that outgoing cross-border payments from Asia are expected to rise from $13.5 trillion in 2025 to $24 trillion by 2033.
Notably, in August, HSBC and Standard Chartered completed the first interbank transaction on the SWIFT blockchain infrastructure.