DBS, OCBC & UOB trial tokenised SGD payments on Swift

DBS, OCBC and UOB have completed live domestic Singapore dollar transactions using tokenised deposits on Swift's blockchain-based ledger, marking the first live interbank use of tokenised deposits by Singapore's three local banks.

The project focused on domestic Singapore dollar payments and used Swift's ledger to exchange payment messages between the banks. The resulting obligations were recorded as tokenised deposit obligations on each bank's own tokenised-deposit infrastructure, then matched and netted on Swift's ledger before final settlement through existing systems.

The development is part of a broader push by banks and market infrastructure providers to test how digital forms of commercial bank money can work within regulated payment systems. Tokenised deposits are standard bank deposits represented in digital form, designed to move across blockchain or distributed-ledger systems while remaining claims on regulated banks.

Swift earlier said its blockchain-based ledger was ready for initial use, with 17 banks across six continents preparing to conduct live transactions using tokenised deposits. The Singapore transactions are among the first live examples of that effort moving into operational use.

Always-on payments

The three banks positioned the project as a response to a longstanding constraint in interbank payments: limited operating hours. Shared-ledger models are being explored to support processing outside traditional settlement windows, particularly for clients whose treasury and commerce operations now run continuously.

"In a digital economy, our clients' businesses operate round the clock, and their money should too. Our pilots prove that with tokenised deposits, clients can transact USD and SGD payments any time, any day, including over a weekend. DBS has been building its digital asset ecosystem since 2021 to help institutions harness these capabilities at scale. To help accelerate adoption across the industry, we will continue working with partners to develop interoperability and common standards across different ecosystems. This will bring the industry closer to seamless transactions and reinforce Singapore's position as a global financial and innovation hub," said Rachel Chew, Chief Operating Officer and Co-Head of Digital Assets, Global Transaction Services, DBS.

Tokenised deposits differ from stablecoins and central bank digital currencies because the funds remain bank liabilities issued by regulated institutions. Supporters argue that this may make them easier to integrate with existing banking controls, customer relationships and settlement arrangements.

One of the main issues for banks has been interoperability between separate digital money systems. In this model, Swift acts as a coordinating layer between institutions rather than replacing the final settlement arrangements banks already use.

Industry collaboration

OCBC linked the result to earlier cross-border work involving US dollar transactions, suggesting the banks and Swift are testing the same basic structure across both domestic and international payment flows.

"Singapore's first live SGD interbank transactions enabled by bank-issued digital money demonstrate the value of industry collaboration in shaping the future of payments. The initiative provides valuable insights into how shared-ledger technology can unlock new payment capabilities for businesses while maintaining the trust and resilience of today's financial system. Together with our successful live USD cross-border transaction, these milestones highlight how Swift's ledger can support always-on domestic and international payments. As part of OCBC's broader digital assets strategy, we are continuing to explore how trusted forms of digital money can enable more efficient, programmable and interoperable financial services. We are pleased to work alongside Swift and industry partners to advance innovation that strengthens Singapore's position as a leading digital and financial hub," said Carmen Chan, Deputy Head of Global Transaction Banking at Singapore's OCBC.

The participation of all three major Singapore banks adds weight to the project in a market often used as a testing ground for new financial infrastructure. Domestic interbank transactions require coordination on messaging, reconciliation and settlement treatment, making live production tests more significant than isolated pilot exercises within a single institution.

The latest work also follows UOB's use of Swift's ledger for other currencies, including the Hong Kong dollar and US dollar, pointing to an expanding set of tests across currencies and operating hours as banks assess whether tokenised deposit systems can support regional transaction banking needs.

While the immediate transactions were domestic and denominated in Singapore dollars, banks see potential uses in corporate treasury, trade and digital commerce if common standards can be established. Those areas typically involve multiple counterparties, cut-off times and reconciliation delays that shared-ledger systems are intended to reduce.

The sector's challenge will be turning successful live tests into broader operational networks that work across banks and jurisdictions without fragmenting liquidity or adding legal and operational complexity. Much will depend on standard-setting, messaging consistency and clear links between digital representations of deposits and existing settlement processes.

"UOB's participation in Swift's ledger reflects our commitment to advancing digital assets and transaction banking capabilities to deliver always-on, borderless payments for clients. As the first Singapore-headquartered bank to complete live transactions on Swift's ledger, we have expanded from Hong Kong dollar to Singapore dollar and US dollar transactions beyond traditional banking hours, demonstrating the potential of tokenised infrastructure to enable faster, more seamless movement of funds across markets, currencies and time zones, while supporting Singapore's position as a leading global financial and innovation hub. As the One Bank for ASEAN, we will further develop trusted, scalable payment solutions that strengthen regional connectivity and enable cross-border commerce," said So Lay Hua, Head of Group Transaction Banking, UOB.