HSBC and Standard Chartered Complete First Live Transaction on Swift's Blockchain-Based Ledger

HSBC and Standard Chartered have completed the first live tokenised deposit transaction on Swift's new blockchain-based ledger.

The live transaction represents a significant milestone in the development of tokenised deposits, which aim to provide 24/7 payment availability and better liquidity efficiency.

Swift's Blockchain-Based Ledger

Swift's blockchain-based ledger was announced as ready for initial use in July, with 17 banks across six continents preparing to pilot transactions using tokenised deposits. The exchange between HSBC and Standard Chartered is the first interbank transaction executed on Swift's ledger.

Tokenised Deposits

Under the transaction, Swift acted as a secure orchestration layer, enabling obligations to be matched and netted between the two banks prior to final settlement through existing systems. The resulting obligations were recorded as tokenised deposit obligations on both HSBC's Tokenised Deposit Service (TDS) and Standard Chartered's tokenised-deposit infrastructure.

Lewis Sun, Head of Digital Currencies at HSBC, stated that the interoperability transaction with Standard Chartered via Swift is a landmark moment for the promise of tokenised deposits. He added that this technology can solve real-world challenges for corporates, such as moving liquidity around the world, increasing cash visibility, and reducing the complexities associated with traditional cross-border transactions.

Gary Howes, Founder at Pound Sterling Live, commented that this transaction proves that Swift has never been the hold-up to payments and a block to correspondent banking, and that messaging protocols like Swift are here to stay.

Transaction Details

This transaction marks an important step towards the widespread adoption of tokenised deposits and blockchain technology in the financial industry.