HSBC, Standard Chartered Test Interbank Tokenized Deposits On SWIFT
Banks clear major milestone toward real-time, cross-border tokenized deposits. The post HSBC, Standard Chartered Test Interbank Tokenized Deposits On SWIFT appeared first on Global Finance Magazine .
HSBC and Standard Chartered have successfully completed the first interbank transaction using tokenized deposits via SWIFT's digital blockchain ledger, announced on August 19. The banks reported that tokenized deposits, backed by regulated financial institutions, will play an increasingly significant role in treasury management, operational efficiency, and real-time liquidity management across markets.
Mark Willis, head of emerging payments at Standard Chartered, expressed optimism about interoperable tokenized deposits in a prepared statement. Interoperability challenges remain a hurdle, but the transaction demonstrated how digital money issued by banks can be integrated across institutions while maintaining regulatory oversight.
SWIFT's blockchain platform served as the orchestration and record-keeping layer for the transaction. The announcement follows six weeks of SWIFT's digital ledger platform accessibility, with additional functionality expected after initial go-live. Unlike stablecoins, tokenized deposits are issued by regulated financial institutions and maintain direct claims on those institutions.
The Clearing House, owned by 25 major financial institutions, plans to launch on-chain clearing and settlement of tokenized deposits within the banking framework. Cari Network is also pursuing a pilot to support real-time settlement and digital money movement, backed by U.S. regional institutions. The importance of these projects lies in their potential to deliver faster settlement, lower reconciliation costs, and real-time cash management.
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