HSBC and StanChart Complete First Live Cross-Border Tokenised Deposit Transaction

HSBC and Standard Chartered have successfully completed the first live cross-border interbank transaction using tokenized deposits on Swift's blockchain-based ledger. The landmark transaction marked the first interbank transfer executed on Swift's ledger since it became ready for live use in July.

The banks conducted the transfer through an exchange of payment messages between them using Swift's ledger, with the resulting obligations recorded as tokenized deposit obligations on both HSBC's Tokenised Deposit Service and Standard Chartered's tokenized-deposit infrastructure.

Lewis Sun, HSBC's head of digital currencies, described the demonstration as a 'landmark moment for the promise of tokenized deposits,' highlighting how bank-issued digital money can be interoperable across institutions while maintaining regulatory oversight.

The successful transaction follows Swift's announcement in July that its blockchain-based ledger was ready for initial live use for tokenized deposits. The ledger is being piloted with 17 banks across six continents, including MUFG, Wells Fargo, and Lloyds.