What to know:
- HSBC and Standard Chartered settled tokenised deposits in real time via SWIFT.
- Tokenised deposits give banks a regulated, 24/7 on-chain alternative to stablecoins.
- Expansion will depend on adding more banks, CBDC integration, and regulatory clarity.
SWIFT has successfully transitioned its blockchain pilot from a test phase to live settlement. HSBC and Standard Chartered have completed the first live cross-border payments that were made possible through SWIFT infrastructure for settling the tokenisation of deposits in real-time.
SWIFT Enables Tokenisation
In that case, the tokenised deposits held on a permissioned ledger between HSBC and Standard Chartered were being transferred via SWIFT’s platform to initiate messages and perform a settlement. Publically operated stablecoin transfers differ from tokenisation as it represents the bank’s money on blockchain, which is 1:1 backed by the reserves of the bank.
In this case, SWIFT facilitated the connection of bank systems while not requiring any shared ledger across all participants. So acting as an interoperability layer.
Also Read: SWIFT Announces Blockchain Ledger Pilot with 17 Banks
Bridging TradFi And Blockchain
The pilot initiative will work as a bridge connecting the conventional finance industry with the distributed ledger technology and will open new doors for both the industry and the regulators.
Tokenised deposits can, on one hand, provide financial institutions with 24/7 programmable settlement while at the same time remaining within the confines of regulated banking structures, thereby acting as an alternative to stablecoins and CBDCs.
As a reference for themselves, crypto exchanges and companies have an institutional rails benchmark now; they will be able to see in which ways it is possible to implement on-chain foreign exchange and treasury flows while staying within the regulated perimeter if the test run gets successful.
Also Read: Bank of England Approves HSBC Orion for UK Digital Securities Sandbox
Regulators Back Tokenisation
Tokenisation and settlement in the wholesale market have been hot topics for years to come as per the tokenisation of real-world assets in 2025-2026.
Source: yellow.com
The UK, EC, and Hong Kong have been among those regulatory agencies which have shown their willingness towards tokenised deposits through banking regulations and have so been reducing the level of legal uncertainty surrounding unbacked stablecoins.
Also Read: CFTC Chair Says Crypto Rules Will Advance Without CLARITY Act
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