UOB Leads Singapore Banks on Swift Blockchain Adoption

UOB and HSBC have successfully completed live cross-border transactions in Hong Kong dollars using Swift's blockchain-based ledger. This achievement makes UOB the first Singapore-headquartered bank to go live on the platform, following an initial transaction by HSBC and Standard Chartered last week.

The Swift ledger acts as an orchestration layer between separate tokenized deposit platforms operated by banks, rather than processing payments directly. For commercial bank money transfers, there are two steps: client payment, where each bank's tokenized deposits come in, and settlement between banks via RTGS or correspondent banking. The Swift ledger also facilitates the netting of interbank settlements.

UOB plans to expand its use of the Swift ledger by executing Singapore dollar and US dollar transactions with additional partner banks in September. Notably, these transactions will include domestic interbank payments, extending the ledger's application beyond cross-border transactions as initially envisioned by Swift.