HSBC and Standard Chartered Bank Conduct First Tokenized Deposit Transaction on SWIFT's Blockchain Ledger

HSBC and Standard Chartered Bank Achieve First Live Transaction via SWIFT Collaboration

It has been announced that the first cross-border tokenized deposit transaction between HSBC and Standard Chartered Bank has gone live on SWIFT's (Society for Worldwide Interbank Financial Telecommunication) blockchain ledger.

This transaction took place approximately six weeks after the launch of the managed service. Both banks operate their independent tokenized deposit infrastructures and exchange payment messages through a shared orchestration layer provided by SWIFT. This has demonstrated a model that ensures interoperability between financial institutions while maintaining individual ledgers and existing compliance frameworks.

Mechanism of the Transaction and Final Settlement via Existing Payment Systems

In this transaction, the reconciliation and netting of interbank debts were conducted on SWIFT's shared ledger (based on Hyperledger Besu).

Due to netting, which compressed the amounts to only the differences, optimization of the liquidity required for settlement and reduction of reconciliation costs are anticipated. However, common deposit token transfers and on-chain fund settlements were not conducted. Actual fund transfers were carried out through external systems such as existing Real-Time Gross Settlement (RTGS) systems.

Thus, messaging and reconciliation are processed continuously (24/7) on the blockchain, while final settlements depend on established commercial bank infrastructures, creating a hybrid structure.

Tokenization Efforts by Both Banks and Trends Among 17 Participating Banks

HSBC is expanding its tokenized deposit services from Hong Kong and Singapore to the UK, the US, and the UAE (United Arab Emirates), offering multi-currency 24-hour remittances for corporate clients in various countries.

Meanwhile, Standard Chartered Bank has been advancing the construction of tokenized infrastructure through partnerships with Ant International and participation in the BIS (Bank for International Settlements) led Project Agorá.

This demonstration is part of a pilot operation promoted by SWIFT, with 17 major banks from six continents, including Citi, BNP Paribas, UBS, and Mitsubishi UFJ Financial Group (MUFG), participating in the group.

Challenges and Future Prospects

The announcement did not disclose quantitative data such as transaction amounts, currency pairs, or processing speeds, and this achievement remains an initial milestone rather than an immediate pathway to commercial use.

For widespread adoption in corporate finance, overcoming challenges such as the realization of "continuous final settlement" without business hour restrictions and the establishment of common rules across jurisdictions is necessary.

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