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Standard Chartered and HSBC have announced the successful execution of the first live cross-border transaction of tokenized deposits between two banks using Swift’s blockchain-based ledger. This milestone represents a new phase in the development of cross-border payments utilizing regulated bank deposits.

The operation marks a significant step forward in the use of tokenized deposits by regulated financial institutions, enabling their issuance, transfer, recording, and settlement via Swift's blockchain ledger. It also demonstrates seamless interoperability between banks and supports the industry's progression toward facilitating 24/7 cross-border payments.

First Interbank Transaction via Swift

The live transaction follows Swift's announcement in July 2026 that its blockchain-based ledger was ready for initial use, with 17 banks across six continents preparing to trial live transactions using tokenized deposits to enable round-the-clock payments and improve liquidity efficiency.

This operation is the first interbank transaction executed on Swift's ledger. It was conducted by exchanging payment messages between HSBC and Standard Chartered, while the resulting liabilities were recorded as tokenized deposit liabilities on both HSBC’s Tokenised Deposit Service (TDS) and Standard Chartered’s tokenized deposit infrastructure.

Matching Liabilities Before Final Settlement

Swift’s blockchain ledger functioned as a secure orchestration layer, allowing the matching and clearing of liabilities between the two banks before finalizing the settlement through existing systems. For clients, the transaction highlights the massive potential of cross-border payments to support a global economy that increasingly operates around the clock.

Louis Sun, Head of Digital Currencies at HSBC, stated that the interoperability transaction executed with Standard Chartered via Swift is a watershed moment for the potential of tokenized deposits. He explained that it proves digital money issued by banks can operate cohesively across different institutions while maintaining the integrity and regulatory oversight of the current financial system.

Solving Liquidity Challenges

Sun added that the interoperability of tokenized deposits demonstrates the ability to combine different infrastructures to benefit clients. For businesses, this addresses real-world challenges, including moving liquidity globally, increasing cash flow visibility, and reducing the complexities often associated with traditional cross-border transactions.

Mark Willis, Head of Emerging Payments, Transaction Services, and Digital Assets at Standard Chartered, noted that tokenized deposits are a core pillar of the bank’s digital asset strategy. He expressed the bank's pleasure in collaborating with HSBC on this milestone, which signifies a major step toward more seamless and continuously available financial services.

Global Market Footprint

HSBC’s Tokenised Deposit Service (TDS) currently operates in six markets: Hong Kong, Singapore, Luxembourg, the UK, the US, and the UAE. It supports multiple currencies, including CNH, HKD, SGD, EUR, GBP, USD, and AED, providing clients with 24/7 access to liquidity.

Standard Chartered operates in 55 dynamic markets worldwide, helping clients move regulated bank money across borders with greater speed, transparency, and efficiency while maintaining robust governance.