Singapore Banks Complete Interbank Transaction with Tokenized Deposits

DBS Bank, OCBC Bank, and UOB have completed a SGD-denominated interbank transaction using tokenized deposits on the Swift blockchain-based ledger.

This marks the first time these three banks have used tokenized deposits for an interbank transaction. The banks leveraged the shared ledger technology to enable 24-hour settlement without being constrained by traditional banking system processing times.

The transaction involved exchanging settlement messages through the Swift ledger, with any resulting debts recorded as tokenized deposit obligations on each bank's tokenized deposit platform. The Swift ledger facilitated the verification and netting of interbank debts, while subsequent final settlements were made through existing payment systems.