HSBC and Standard Chartered complete first live transaction on Swift blockchain

HSBC and Standard Chartered have completed the first live interbank transaction on Swift’s blockchain-based ledger. The operation demonstrated that tokenized deposits issued by different regulated banks can be transferred and settled across institutions.

The two banking giants used Swift’s ledger to exchange payment messages. The resulting obligations were recorded as tokenized deposits on each bank’s own infrastructure, while Swift’s ledger served as an orchestration layer that matched and netted the obligations before final settlement through the banks’ existing systems.

The transaction follows Swift’s July launch-readiness announcement for the ledger, when 17 banks from six continents said they were preparing to pilot live transactions involving tokenized deposits. The initiative is designed to support 24/7 cross-border payments and more efficient liquidity management.

The latest transaction shows that it is possible for bank-issued digital money to work across different financial infrastructures without replacing the regulated banking system.

For companies operating internationally, that could eventually mean faster movement of liquidity, greater visibility over cash and more efficient cross-border treasury operations, according to the banks.

HSBC said interoperable tokenized deposits could help corporates move liquidity between financial institutions while retaining the governance and regulatory controls of traditional bank money.

“Tokenized deposit interoperability underscores how we can bring together different infrastructures to benefit our clients. For corporates, this is about solving real-world challenges, such as moving liquidity around the world, across financial institutions, increasing cash visibility and reducing the complexities sometimes associated with traditional cross-border transactions,” Lewis Sun, Head of Digital Currencies at HSBC, commented on the live transaction.

Mark Willis, who leads emerging payments, transaction services and digital assets at Standard Chartered, said the growing use of interoperable tokenized deposits could give corporate and institutional clients more efficient ways to move and manage liquidity across borders.

“Tokenized deposits are a key pillar of Standard Chartered’s digital assets strategy which aims to build end-to-end solutions that enable our clients to transact, settle and manage tokenized liquidity and value across borders. We are pleased to partner with HSBC on executing the first live transaction on Swift’s blockchain-based ledger marking an important step towards more seamless, always-on financial services,” Willis said.

Standard Chartered’s tokenized-deposit capabilities are part of its wider digital assets ecosystem covering custody, tokenization and stablecoin settlement.