Key Takeaways
- DBS and Citi basically pulled off a USD payment in just minutes this weekend using Swift’s ledger. Pretty quick compared to how TradFi cross-border payments usually work.
- Swift’s 17-bank pilot is pushing tokenized deposits closer to becoming an actual 24/7 banking option, instead of something that’s mostly talked about in theory.
- Citi thinks always-on payments are starting to become the norm, especially with tokenized assets getting close to the $40 billion mark. The space is definitely picking up momentum.
Citi and DBS Put Swift’s 24/7 Digital Ledger to the Test During Weekend Hours
The blockchain technology used, also known as the Swift Digital Ledger, was developed by the global financial messaging network Swift in order to offer 24/7 settlement. This weekend, while traditional finance (TradFi) rails were closed, Citi and DBS made a USD payment with the Swift blockchain using tokenized deposits. While the TradFi settlement period is typically two days, the transaction was settled in “minutes,” according to the DBS release.
“In a global digital economy that never sleeps, businesses need to move money more quickly and efficiently across borders to stay competitive,” Rachel Chew, Group Chief Operating Officer and Co-Head of Digital Assets, Global Transaction Services, DBS, remarked. “Swift Digital Ledger is bridging traditional banking infrastructures with emerging digital networks to enable deeper interoperability that benefits clients.”
The DBS executive added:
“We are pleased to be working with Citi to demonstrate how tokenised money is moving from experimentation to real-world adoption – laying the foundations for a more connected, nimble and always-on global financial system.”
Swift Enlists 17 Banks as Tokenized Money Moves Into the Real World
The news follows the announcement from Swift regarding the Swift Digital Ledger being open for use in July. The company said that “17 banks from six continents” were participating in using the blockchain pilot. The goal is to fuel “ faster, flexible money movement across the world” and push forth future innovative technologies like “programmable money and agentic commerce.”
Citi’s Asia South Head of Services, Mridula Iyer, believes the weekend transfer using the Swift Digital Ledger is a turning point. “This milestone with DBS on Swift’s ledger reflects Citi’s commitment to building financial infrastructure for our clients and partners that is always-on, interoperable and fit for the future.” The Citi executive suggested that 24/7 cross-border payments are basically today’s reality.
Tokenized Assets Close In on the $40 Billion Mark
The news comes as tokenized crypto assets have turned heads in TradFi circles, and the trend has even caused some grievances among a few players. According to rwa.xyz stats on Sept. 7, the global distributed value of tokenized real-world assets is getting awfully close to breaching $40 billion, as it stands at $39.18 billion today.
“This work is a natural extension of our strategy in the Services business to integrate our traditional cash management and securities capabilities with emerging tokenised networks and assets and deliver value to institutional clients across their local and global operating models,” Citi’s Asia South executive concluded.
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