DBS and Citi Push Swift's Blockchain to New Heights

A major milestone has been reached in cross-border payments as DBS, Southeast Asia's largest commercial bank, and Citi, a major U.S. Wall Street bank, completed their first live transaction using digital tokenized deposits on Swift's Digital Ledger.

The transaction, which took place on September 5 between DBS in Singapore and Citi in New York, was processed in minutes over a weekend instead of the usual two business days.

This is the second live trial on Swift's blockchain network, following a test between HSBC and Standard Chartered in August. DBS noted that cross-border payments leaving Asia are expected to hit $24 trillion by 2033.

Citi's head of services for Asia South, Mridula Iyer, said processing live weekend payments shows that 24/7 cross-border transfers are becoming a reality.

Meanwhile, Ripple has been expanding its business payment capabilities, selling financial software and payment tools directly to banks and corporate clients. This puts it in direct competition with Swift, which handles around $1.5 quadrillion in payments each year.