DBS and Citi have joined forces with Swift's blockchain-based infrastructure to support cross-border U.S. dollar transfers using tokenized representations of bank deposits. The arrangement is designed to let payments move continuously rather than being constrained by traditional banking operating hours.

Banks Target Continuous Cross-Border Payments

According to Cointelegraph, DBS and Citi will use tokenized deposits as part of the payment arrangement. The partnership is intended to facilitate instant cross-border USD payments that operate around the clock, including outside conventional banking hours.

Tokenized deposits represent bank deposits in digital form and can be transferred using blockchain-based infrastructure. Unlike stablecoins or cryptocurrencies, they are claims on commercial bank money and remain within the regulated banking system. In this case, the technology is being applied specifically to cross-border U.S. dollar payments, not to cryptocurrency transfers.

Swift's blockchain-based ledger supplies the infrastructure for the initiative. Swift, the global financial messaging network used by thousands of financial institutions worldwide, has been developing blockchain-based payment infrastructure — including experiments linking its network to both public and private blockchains — as financial institutions explore ways to modernize cross-border transactions.

Swift's Blockchain Ledger Underpins the Initiative

The partnership places tokenized deposits within a banking payment environment connected to Swift's blockchain-based ledger. The stated objective is to combine the availability of blockchain infrastructure with bank-based dollar deposits for cross-border payments.

For DBS and Citi, the arrangement centers on improving the availability and speed of international USD transfers. The ability to make payments 24/7 is a key feature, with transactions intended to be processed instantly. Traditional cross-border payments typically settle only during business hours and can pass through multiple correspondent banks, adding time and cost — a long-standing friction point that industry initiatives, including the G20 cross-border payments roadmap, have aimed to address.

The development also illustrates how established financial institutions are exploring blockchain technology for specific payment functions. Major banks have separately piloted tokenized deposit and wholesale settlement systems in recent years. Rather than replacing traditional banking infrastructure outright, the arrangement uses tokenized deposits within a framework involving banks and Swift.

Focus on Instant USD Settlement

The partnership is specifically concerned with cross-border U.S. dollar payments. Cointelegraph reported that the service will allow instant payments around the clock through tokenized deposits on Swift's blockchain-based ledger.

No additional details about the launch date, transaction volumes, or the broader number of participating institutions were provided in the original X post (Cointelegraph). These details — including whether more banks join the arrangement — remain points to watch as the initiative develops.

The immediate milestone is therefore the partnership between DBS and Citi and their planned use of tokenized deposits on Swift's blockchain-based ledger to support 24/7 cross-border USD payments.