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DBS and Citibank Complete Cross-Border Payment Using Swift Digital Ledger
DBS Bank and Citibank successfully executed a cross-border payment in US dollars between Singapore and the United States on September 5, utilizing tokenized deposits through the Swift Digital Ledger. This transaction, completed over the weekend, took only a few minutes, significantly reducing the time typically required for traditional cross-border payments, which can take up to two business days. The swift execution of this payment allows businesses to circumvent delays caused by time zone differences and weekend banking gaps.
This marks the second confirmed real-time application of the Swift Digital Ledger, following the first transaction completed by HSBC and Standard Chartered in August. Swift announced the preliminary availability of the ledger on July 9, with 17 banks participating in its pilot phase. Notably, DBS is the only bank headquartered in Asia among the 12 core design group members involved in this initiative.
Rachel Chew, Chief Operating Officer of DBS Group, emphasized that the Swift Digital Ledger is bridging traditional banking infrastructure with emerging digital networks, facilitating the practical use of tokenized currency beyond experimental phases. Citibank's Head of South Asia Services, Mridula Iyer, highlighted that these weekend real-time transactions demonstrate the feasibility of around-the-clock cross-border payments. Looking ahead, DBS plans to launch DBS Token Services in 2024, which will provide 24/7 programmable instant value transfer services.
Source: KLEA News