DBS and Citi settle weekend USD transfer in minutes using Swift's blockchain ledger

Weekend USD transfer settled in minutes

DBS and Citi completed a cross‑border US dollar payment on a weekend using tokenized deposits on Swift’s Digital Ledger. The transaction, made on 5 September between Singapore and New York, settled in minutes rather than the usual two‑day wait.

Key points

• First weekend cross‑border USD payment on Swift’s blockchain ledger.
• Settlement took minutes, not up to two business days.
• Second confirmed live use of Swift’s Digital Ledger after HSBC and Standard Chartered’s test in August.
• Swift’s ledger launched in July with 17 banks across six continents.
• Asia’s outbound cross‑border payments are projected to reach $24 trillion by 2033.

DBS and Citi announcement

In a joint statement, DBS (ticker D05) and Citi (C) said the payment used tokenized deposits – digital representations of cash that can be moved on a blockchain – to enable instant settlement on Swift’s Digital Ledger. The banks highlighted the ability to move liquidity 24 hours a day, reducing delays for corporate treasurers.

Confirmed facts

• The payment was executed on 5 September between DBS in Singapore and Citi’s New York office.
• It settled in minutes, a significant reduction from the typical two‑day processing time.
• It is the second live transaction on Swift’s Digital Ledger, which began operations in July.
• Mridula Iyer, Citi’s head of services for Asia South, said the test shows “always‑on cross‑border payments are already a reality.”
• DBS is the only Asian‑headquartered bank in Swift’s core design group of 12 banks.

Open questions

• The article does not specify how quickly other banks will adopt the technology or the cost structure for future transactions.

Why it matters

Weekend delays in cross‑border payments can tie up working capital for businesses that operate globally. By settling in minutes, the new method could reduce financing costs and improve cash flow for companies moving money between Asia and the United States.

Next steps

Swift plans to continue testing the Digital Ledger with its member banks. Additional live transactions are expected as more banks join the network.

Sources

• CoinDesk
• DBS press release