DBS and Citi Complete First Tokenized USD Cross-Border Payment on Swift Ledger

DBS Bank and Citi have achieved a significant milestone by executing their first tokenized cross-border USD payment over a weekend, marking a new era in financial transactions. The transaction, which took place on September 5th, involved the movement of funds from Singapore to the United States and was settled within minutes using tokenized deposits on the Swift Digital Ledger.

This advancement allows for instant settlement and provides 24/7 liquidity movement, removing traditional constraints related to time zones and weekends. As a result, corporate treasurers can access cash more quickly and manage liquidity and foreign exchange risks with greater agility.

DBS is notably the only Asian-headquartered bank participating in the Swift digital ledger core design group, which consists of 12 banks shaping the system's architecture. This transaction builds on the DBS Token Services launched in 2024, which includes DBS Treasury Tokens for programmable value transfers on its permissioned blockchain.

Rachel Chew, DBS’s co-head of digital assets for Global Transaction Services, expressed enthusiasm about the collaboration with Citi, stating that it demonstrates the transition of tokenized money from experimentation to real-world adoption. Mridula Iyer, head of services for Asia South at Citi, emphasized the importance of “always-on” payments, highlighting that this live transaction showcases the reality of continuous cross-border payments.

According to DBS data, Asia's outbound cross-border payments are projected to reach $24 trillion by 2033, nearly doubling the volume expected in 2025. Furthermore, 50% of finance leaders are currently exploring blockchain-powered tools for liquidity and foreign exchange management.