Citi, DBS Bank Enable Tokenization-powered Instant 24/7 Cross-Border USD Payment
Highlights
- DBS and Citi partner to enable instant, 24/7 cross-border USD payments using tokenized deposits.
- The banks executed first weekend USD payment between Singapore and the U.S. on Swift's digital ledger.
- Banks are collaborating to launch blockchain and stablecoin based payments.
DBS Bank and Citi partnered to enable instant, 24/7 cross-border USD payments using tokenized deposits. This comes the banks completed their first weekend USD payment between Singapore and the United States on the Swift’s digital ledger.
Citi and DBS Enable Instant Cross-Border USD Payments Using Tokenized Deposits
In an official announcement on September 7, Citi and DBS Bank revealed first successful USD payment between Singapore and the United States over a weekend. The cross-border payment transaction took minutes to complete as compared the industry norm of up to two business days.
DBS Bank and Citi executed the transaction on September 5 using tokenized deposits via the Swift Digital Ledger. This means companies can now move USD across borders in minutes, even when traditional banking systems are closed.
This provides greater certainty and faster access to cash for suppliers and customers in industries like e-commerce and digital services. Also, it will help corporate treasurers to respond more effectively to changing market conditions.
Rising Demand in Asia
DBS cited a survey finding 50% of finance leaders are already exploring blockchain-powered capabilities to manage liquidity and foreign exchange (FX) risk. Asia’s outbound cross-border payments are projected to reach $24 trillion by 2033, nearly double 2025 volumes of $13.5 trillion.
Notably, the DBS and Citi cross-border payment follows earlier live USD transactions Citi completed on the Swift ledger with First Abu Dhabi Bank and OCBC.
Rachel Chew, COO and Co-Head of Digital Assets at DBS Group, said Swift Digital Ledger is bridging traditional banking rails with emerging digital networks, indicating weekend payment shows tokenized money moving from pilots into live use.
Mridula Iyer, Head of Services for Asia South at Citi, said processing a live weekend transaction with DBS Bank demonstrates that always-on cross-border payments are already a reality for institutional clients.
Citi has also joined Goldman Sachs, Bank of America and 18 other global financial institutions to establish a new company to issue a USD stablecoin. This will also compete with existing USD stablecoins, as banks seek a regulated alternative for payments and settlement.
For corporate entities looking to build their own 24/7 digital cash rails, partnering with top stablecoin infrastructure platforms is a crucial starting step.
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