DBS and Citi Break Ground with Tokenized USD Payment

DBS and Citi have successfully processed a live cross-border USD payment using tokenized deposits, marking a significant milestone in the adoption of blockchain-based infrastructure for institutional payments.

The transaction, which took place on September 5, was conducted over the weekend through Swift's Digital Ledger and closed in just minutes, a major improvement from the traditional two-business-day processing time.

Tokenized deposits are a digital form of a commercial bank's deposit, and this achievement highlights their potential to enable 24/7 payments without the need for traditional banking hours.

The successful transaction also reflects growing institutional interest in tokenized money, with DBS noting that 50% of its finance decision makers are researching how to adopt blockchain-based tools for better foreign exchange and liquidity management.

According to DBS, transactions involving ROI payments are expected to grow rapidly, especially in Asia, with the industry forecast predicting outbound payments from Asia will reach $24 trillion by 2033, nearly double the $13.5 trillion experienced in 2025.