Citibank and DBS Conduct International Payment Over the Weekend Using Tokenized Deposits

Singapore's major bank DBS announced on the 7th that it successfully conducted an international payment in US dollars with Citibank on Saturday, the 5th of this month.

This transaction was executed using Swift's digital ledger and tokenized deposits between DBS in Singapore and Citibank's New York branch. It demonstrated the ability to conduct payments across different jurisdictions and time zones without the constraints of traditional banking hours.

Many experts have pointed out that one of the challenges in the traditional financial system is that transactions cannot be conducted outside of banking hours, such as on weekends. The announcement stated that this transaction was executed based on DBS's expertise and technology gained from its blockchain-based banking services, which aim to enable value transfers 24/7.

DBS explained that this transaction was completed in a matter of minutes, claiming it represents a significant advancement compared to the industry standard of up to two business days for international payments.

Furthermore, it pointed out that this transaction capability would provide greater certainty and faster access to cash for businesses operating 24/7 across borders, such as in commercial transactions and digital services.

There is also a benefit for corporate accountants, as they will be able to move liquidity instantly between companies and markets, allowing for a more efficient response to market changes.

DBS explained that amid market fluctuations and the expansion into new markets, institutions are exploring better ways to manage liquidity and foreign exchange (FX) to build resilience.

According to the company's report, 50% of financial industry leaders are seeking blockchain-enabled functionalities as part of their tools for managing liquidity and foreign exchange.

Additionally, this functionality will help meet the rising demand for international transactions in Asia. It is projected that international payments from Asia to outside the region will increase to $24 trillion (approximately ¥3,742 trillion) by 2033, nearly doubling from about 2025.

Rachel Chew, Group COO of DBS's Global Transaction Services division and co-head of Digital Assets, commented:
In a global digital economy that never sleeps, businesses need to move more money across borders more instantly and efficiently to maintain their competitiveness.

Swift's digital ledger bridges traditional banking infrastructure with new digital networks to achieve deeper interoperability that can benefit customers.

We are pleased to have demonstrated how tokenized money can transition from the experimental stage to practical application in collaboration with Citibank. We have built a foundation for a more robust and faster always-on global financial system.

Muridula Iyer, who leads Citi's services in Asia South, commented:
This milestone with DBS in Swift's digital ledger reflects our commitment to building a future-ready financial infrastructure that is always-on and interoperable for our clients and partners.

Processing live transactions over the weekend proves that always-on international payments are already a reality.

This initiative is a natural extension of our service business strategy to integrate traditional cash management and securities functionalities with emerging tokenized networks and assets, providing value to institutional clients across local and global operating models.

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