Standard Chartered and HSBC complete first tokenized deposit transaction on Swift
Standard Chartered and HSBC have completed the of bank-to-bank tokenized deposit interoperability with the first live cross-border transaction on Swift’s blockchain ledger.
As per the announcement, the execution of a cross border transaction of tokenized deposits through Swift Blockchain ledger showcases interbank interoperability and progresses 24/7 cross border payments.
The live transaction comes after Swift’s July 2026 announcement that its blockchain-based ledger was ready for initial use, with 17 banks across six continents preparing to pilot live transactions using tokenized deposits for 24/7 payment availability and better liquidity efficiency.
The transaction was an exchange of payment messages between HSBC and Standard Chartered, where the obligations were recorded on the blockchain as tokenized deposit obligation on both HSBC’s tokenized deposit service and Standard Chartered’s tokenized deposit infrastructure.
Swift’s blockchain-based ledger acted as a secure orchestration layer, enabling the obligations to be matched and netted between the two banks prior to final settlement through existing systems.
Lewis Sun, Head of Digital Currencies, HSBC, noted that HSBC’s interoperability transaction with Standard Chartered is a landmark moment for the promise of tokenized deposits.
He added, “It demonstrates how digital money issued by banks can be interoperable across institutions while maintaining the integrity and regulatory oversight of the existing financial ecosystem. 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.”
Mark Willis, Head of Emerging Payments, Transaction Services and Digital Assets at Standard Chartered, added, “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.”
He believes that as institutional demand grows for efficient ways to move liquidity interoperable tokenized deposits will play an increasingly important role unlocking operational efficiencies and support real time liquidity management across markets.”
This transaction is part of a broader industry effort for distributed ledger technology to support real-world payment use cases at scale, while preserving the role of regulated bank money.
Recently Standard Chartered Bank in UAE received an in-principle approval from Dubai’s Virtual Asset Regulatory Authority to offer crypto trading through a crypto brokerage license.
