HSBC and Standard Chartered have announced the inaugural live tokenized deposit transaction using Swift’s blockchain-based ledger.
Currently the vast majority of tokenized deposits are executed on single bank blockchains and hence only support transactions between customers of the same bank. Swift is enabling interoperability between these silos, using its blockchain to support 24/7 DLT-based cross border payments.
It follows Swift’s announcement that the minimum viable product version of its blockchain solution was live in July, with 17 banks across six continents preparing to pilot the solution. In the past, many banks have been slow to move from proofs of concept to live transactions, so a month gap is extremely fast for these large banks. Their participation in other tokenized deposit initiatives may have accelerated the move. HSBC and Standard Chartered have been involved in EnsembleX coordinated by the Hong Kong Monetary Authority. HSBC is also a participant in multibank tokenized deposit initiatives including the UK’s GBTD and the US initiative from The Clearing House.
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