TheBlock
DBS and Citi completed a weekend US dollar payment between Singapore and the US using tokenized deposits on Swift’s Digital Ledger. The transaction was processed by DBS and Citi’s New York office on Sept. 5 and took minutes, compared with up to two business days for a conventional cross-border transfer.
The payment demonstrates how tokenized deposits can address time-zone and weekend constraints for companies operating across markets. Its initial use cases include e-commerce and digital-services businesses that need to move institutional funds outside traditional banking hours.
Why it matters
The transaction marks a shift from tokenized-money experimentation toward controlled production use on shared financial infrastructure. Swift’s Digital Ledger gives DBS and Citi a common environment for coordinating transfers, while tokenized deposits represent claims on regulated bank money rather than a new crypto asset.
For institutional clients, the important change is operational rather than speculative. A payment that settles in minutes across a weekend could support more continuous treasury management, payment scheduling and liquidity deployment across jurisdictions.
Market impact
Citi joined a Swift pilot for 24/7 cross-border tokenized-deposit payments in July. The bank is also involved in a group of major US banks planning a tokenized deposit network through The Clearing House, with a targeted launch in the first half of 2027.
DBS has expanded its own blockchain infrastructure through the 2024 launch of a banking suite that includes DBS Treasury Tokens for liquidity management. The weekend transfer strengthens the institutional case for tokenized deposits, although its broader impact will depend on adoption, operating rules and interoperability across participating banks.
Frequently asked questions
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What did DBS and Citi demonstrate with tokenized deposits?
They completed a weekend US dollar payment between Singapore and the US using tokenized deposits on Swift’s Digital Ledger.
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How long did the tokenized deposit payment take?
The transaction took minutes. DBS contrasted that with up to two business days for a traditional cross-border payment.
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Why are weekend US dollar payments important for institutions?
They can reduce time-zone and banking-hour delays for companies that need to move funds across jurisdictions, including e-commerce and digital-services businesses.
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Are tokenized deposits the same as cryptocurrency?
No. Tokenized deposits represent claims on regulated bank money, while the payment infrastructure uses distributed-ledger technology to coordinate transfers.
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What broader tokenized-deposit projects are the banks pursuing?
Citi joined a Swift 24/7 payment pilot and is part of a group planning a tokenized deposit network through The Clearing House, targeted for launch in the first half of 2027.
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