At a glance
- Most tokenized deposits today live on a single bank's blockchain and settle only among that bank's customers.
- Swift's minimum viable product went live in July, with 17 banks preparing to pilot it.
- Other experiments are piling up.
Ledger Insights reports that HSBC and Standard Chartered have completed the first live transfer of a tokenized deposit over Swift's blockchain ledger.
Most tokenized deposits today live on a single bank's blockchain and settle only among that bank's customers. Swift's ledger is a shared rail for DLT-based cross-border payments, active around the clock, that connects those isolated chains. It does not replace a bank's internal chain; it operates between them.
Swift's minimum viable product went live in July, with 17 banks preparing to pilot it. They span six continents. The first live transfer followed about a month later. Ledger Insights notes that banks have often been slow to move proofs of concept into production. It suggests the two banks' work on other tokenized-deposit projects may have accelerated the pace. HSBC and Standard Chartered both take part in EnsembleX, the Hong Kong Monetary Authority's project. HSBC is also in the UK's GBTD and The Clearing House's US initiative.
Other experiments are piling up. Standard Chartered's HKDAP, a stablecoin licensed by the Hong Kong Monetary Authority, is in beta as Hong Kong's first regulated stablecoin. The Bank for International Settlements' Agorá experiment has 41 institutions testing a unified ledger for tokenized payments. Seven central banks back it. JPMorgan's JPM Coin added euro payments with Siemens as its first client, but it still settles only inside JPMorgan.
The transfer crossed a bank boundary. A deposit token that stays inside its issuer is just a ledger entry; one that travels between banks is a settlement instrument. The banks preparing to pilot Swift's blockchain will decide whether that instrument becomes routine.
Reported by the Tokenization desk from Ledger Insights. Published . Corrections