DBS and Citi complete weekend payment via Swift’s Digital Ledger

Singapore’s DBS Bank and Citigroup have successfully executed a cross-border payment transaction over a weekend using Swift’s Digital Ledger, marking a key test for the global messaging network’s blockchain-based infrastructure.

The transaction involved the transfer of USD between the two banks using tokenized deposits, representing the second confirmed live use of Swift’s new system. The pilot demonstrates the network’s capability to facilitate payments outside of traditional banking hours, a significant step as Swift aims to compete with newer, always-on digital payment rails.

The use of tokenized deposits, which are digital representations of commercial bank money on a blockchain, is central to the experiment. This technology aims to improve the speed and efficiency of cross-border settlements, which have historically been slow and costly due to reliance on legacy systems.

The successful weekend test is part of Swift’s broader initiative to modernize its infrastructure and remain relevant as financial institutions explore blockchain and digital asset solutions for international transactions.