UOB and HSBC complete live tokenised deposit transfer on Swift blockchain ledger

UOB and HSBC have executed live cross-border tokenised deposit transfers denominated in Hong Kong dollars on Swift’s blockchain-based ledger, with UOB becoming the first Singapore-headquartered bank to go live on the platform. The milestone follows an inaugural transaction between HSBC and Standard Chartered completed the previous week.

The Swift ledger functions as an orchestration layer sitting above each bank’s own tokenised deposit platform rather than processing payments directly. A transfer involves two distinct steps: the client-side movement of tokenised deposits between the participating banks, followed by interbank settlement via real-time gross settlement (RTGS) or correspondent banking channels. The ledger also handles netting of interbank obligations, which is where much of the efficiency case sits.

UOB has signalled plans to extend its activity on the ledger to Singapore dollar and US dollar transactions in September, and intends to bring additional partner banks into those runs. Notably, the September transactions are expected to include domestic interbank payments, a use case that goes beyond the cross-border positioning Swift originally articulated for the ledger. The rationale for routing domestic transactions through Swift’s ledger has not been publicly confirmed by UOB, though one plausible reading is support for corporate multi-currency flows or round-the-clock settlement in currencies outside Singapore’s existing Fast And Secure Transfers (FAST) infrastructure.