DBS and Citi test 24/7 cross-border payments via Swift Digital Ledger

Major Singaporean banks, including DBS, OCBC, and UOB, have successfully completed live domestic transactions using tokenized deposits on the Swift Digital Ledger. These digital versions of traditional bank deposits operate on a shared blockchain-based infrastructure, allowing for interbank settlements in Singapore dollars (SGD) outside of traditional banking hours.

In a separate cross-border test, DBS and Citi completed a Singapore-to-U.S. dollar payment within minutes over a weekend using the same Swift technology. While traditional cross-border transfers can take up to two business days, this method bypassed time zone delays and system closures.

However, industry experts have raised questions regarding the implications of 24/7 markets. Ryan Kirkley, CEO of Global Settlement Network, noted that while digital ledgers show rapid completion, it remains unclear if all underlying obligations reach final legal settlement immediately. He warned that continuous payment capabilities might require banks to maintain larger liquidity buffers or pre-funded balances to manage weekend funding gaps and limited foreign exchange liquidity.