DBS and Citi have completed a U.S. dollar payment between Singapore and the United States over a weekend using tokenized deposits on Swift’s digital ledger, offering a practical test of whether bank-issued digital money can reduce the scheduling constraints of cross-border payments.
The transaction was executed on Sept. 5 between DBS in Singapore and Citi’s New York office, the banks said Monday. It took minutes to complete, compared with the one to two business days commonly required for conventional international bank transfers. Neither bank disclosed the value of the payment or identified customers involved beyond the participating offices.
By settling outside normal banking hours, the test addresses one of the most persistent frictions in international payments: banks in different jurisdictions work on different business days, operating hours and settlement schedules. A payment initiated late on a Friday in one market can otherwise remain pending until institutions in each relevant location reopen.
Tokenized deposits move through Swift’s digital ledger
Tokenized deposits are digital representations of commercial-bank deposits. Unlike privately issued stablecoins, they are designed to represent claims on money held within a regulated bank. In this case, DBS and Citi used those digital representations to transfer U.S. dollars through Swift’s digital ledger initiative.
Swift, the global financial messaging network used by thousands of banks, is developing its ledger infrastructure to support transactions involving tokenized forms of value. The project is intended to connect existing bank systems with digital ledger technology rather than require financial institutions to abandon their established payment rails.
DBS said it is the only Asian-headquartered bank in Swift’s 12-member core design group for the digital ledger. Its participation places Singapore’s largest bank alongside major international lenders working on the technical and operational rules for tokenized cross-border payments.
The weekend transfer does not establish a retail payment service or signal that tokenized deposits are broadly available to corporate customers. It does show that two major banks can use the model to move a payment across time zones without waiting for the next conventional settlement window.
For multinational companies, that capability could be particularly relevant for treasury operations. Businesses that collect revenue, pay suppliers or manage payroll across several countries often keep buffers of cash in different accounts partly because moving funds between markets can be slow. Faster transfers could allow treasury teams to reposition liquidity more quickly when a payment deadline, currency need or operational disruption arises outside local business hours.
Citi and DBS expand tokenized-deposit work
Citi joined a Swift pilot focused on 24/7 cross-border payments using tokenized deposits in July, according to the bank. Citi has separately said its tokenized-deposit tools can support near-instant transfers across selected markets.
The New York-based lender is also participating in work led by The Clearing House, the U.S. banking association and payment operator, to develop a tokenized-deposit network. That initiative has targeted a first-half 2027 launch, though its final design, participating institutions and rollout scope remain subject to further development.
DBS has been developing its own blockchain-based banking tools since 2024. Its suite included DBS Treasury Tokens, which the bank introduced for internal liquidity management and programmable transfers. Treasury tokens can be configured with conditions or instructions, potentially allowing a company to automate certain payments, such as releasing funds after a defined business event.
The Swift transaction links those bank-level tokenization efforts to a cross-border use case. Much of the early work around tokenized deposits has focused on internal transfers, domestic payments or controlled pilots between a limited number of institutions. Cross-border settlement presents a more demanding application because it must account for differing currencies, legal frameworks, compliance processes and operating calendars.
Bank deposits compete for a role in on-chain settlement
The test also adds to a developing contest over which forms of digital money will be used for institutional settlement. Stablecoins have gained traction in crypto markets and in some international payment corridors because blockchain transfers can operate continuously. Commercial banks are attempting to offer similar round-the-clock functionality while keeping customer funds within the regulated deposit system.
That does not mean tokenized deposits and stablecoins will necessarily serve identical customers or use cases. Stablecoins can be transferred between compatible blockchain wallets without relying on a traditional bank account at every stage. Tokenized deposits, by contrast, are generally expected to operate in permissioned environments where participating banks identify customers and apply their existing compliance controls.
For banks, this structure could preserve their role in payments and cash management as customers demand faster settlement. It could also give corporate users a route to programmable payment tools without moving operating balances into independently issued digital tokens.
The practical challenge will be scale. A bilateral transfer between DBS and Citi demonstrates technical feasibility, but broad commercial use would require more participating banks, common standards for tokenized deposits, clear rules on settlement finality and reliable connections between digital ledgers and existing account systems.
Swift’s involvement may help address the interoperability issue. Banks already use its network to communicate payment instructions across borders, and its digital ledger work is designed to build on that reach. If multiple institutions can use a shared framework rather than develop separate, closed token systems, corporate customers could avoid having to maintain different arrangements with each bank.
The DBS-Citi payment therefore offers a narrow but concrete indication of how tokenized bank money could reshape cross-border cash management: not by replacing bank deposits, but by making them available when the traditional international payment timetable is closed.
Explore how tokenization reshapes cross-border finance with Toobit’s detailed guide on tokenized equities and institutional adoption.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
