Swift has completed its first live cross-border bank payment using its blockchain-based ledger with HSBC and Standard Chartered.

The transaction linked separate tokenized deposit platforms through Swift’s infrastructure, marking a significant step toward round-the-clock cross-border payments. The milestone shows how regulated banks can move tokenized deposits across different systems while preserving existing compliance and settlement processes.

Swift tests interoperability between tokenized deposit networks

According to a joint press release issued Wednesday, HSBC and Standard Chartered executed the first live cross-border transaction using Swift’s blockchain-based ledger. The banks exchanged payment instructions through the network and recorded the resulting obligations on their respective tokenized deposit platforms.

Swift’s ledger served as a coordination layer between the institutions rather than as a settlement network for funds. The system matched and netted obligations between the two banks before final settlement took place through traditional payment rails. Swift, the Belgium-based cooperative whose messaging network connects more than 11,000 financial institutions in over 200 countries, has framed the shared ledger as an extension of that role rather than a departure from it.

The transaction showed that banks can connect separate tokenized deposit infrastructures without moving to a single shared platform. This approach allows institutions to retain control over their own systems while enabling interoperability across networks.

The development follows Swift’s July announcement that its blockchain ledger was ready for initial use. At that time, 17 banks across six continents committed to testing live tokenized deposit transactions through the platform.

Lewis Sun, Head of Digital Currencies at HSBC, described the transaction as a landmark moment for tokenized deposits. He said interoperability can help corporate clients move liquidity globally while improving visibility over cash positions.

Banks push toward always-on cross-border payments

The transaction is part of a broader effort to modernize international payments using distributed ledger technology. Today, cross-border payments typically move through chains of correspondent banks, with settlement tied to business hours across time zones. The G20-backed roadmap coordinated by the Financial Stability Board has set targets for faster, cheaper and more transparent cross-border payments, including a 2027 target for 75% of cross-border wholesale payments to be credited within one hour.

Unlike stablecoins, tokenized deposits represent direct claims against commercial banks and remain within regulated banking frameworks. Regulators have meanwhile been formalizing stablecoin rules, including the EU’s MiCA framework and the U.S. GENIUS Act signed into law in July 2025.

Under Swift’s design, HSBC used its Tokenised Deposit Service while Standard Chartered relied on its own infrastructure. The shared ledger coordinated obligations between the banks without creating a new public payment token.

Mark Willis, Head of Emerging Payments, Transaction Services and Digital Assets at Standard Chartered, said tokenized deposits are central to the bank’s digital asset strategy. He added that interoperable deposits could improve treasury management and real-time liquidity operations for institutional clients.

HSBC’s Tokenised Deposit Service is active across Hong Kong, Singapore, Luxembourg, the United Kingdom, the United States, and the United Arab Emirates. The service currently supports seven currencies, including the U.S. dollar, euro, British pound, offshore Chinese yuan, Hong Kong dollar, Singapore dollar, and UAE dirham.

Swift’s pilot network includes major financial institutions such as Citi, UBS, Wells Fargo, BNP Paribas, DBS, MUFG, Lloyds, and ANZ. Although the first transaction confirms operational interoperability, the initiative remains in a controlled rollout phase.

Going forward, participating banks will test additional currencies, jurisdictions, and payment scenarios. The next stage will focus on liquidity management, compliance requirements, and expanding support for continuous cross-border payment processing.

Source: Standard Chartered and HSBC execute first live tokenised deposit transaction on Swift’s blockchain-based ledger