Swift and 17 Banks Launch Tokenized Deposit Pilot on Blockchain Ledger

Swift opened its blockchain-based shared ledger for initial use on July 9, 2026, with 17 banks across six continents preparing to test cross-border payments using tokenized deposits. The infrastructure records and validates payment commitments between participating banks while allowing final settlement through established mechanisms such as real-time gross settlement systems. The model is designed to connect banks’ separate digital-money platforms and enable regulated, interoperable payments around the clock.

Citi said on September 2 that it completed live U.S. dollar transactions with First Abu Dhabi Bank and Oversea-Chinese Banking Corporation, becoming the first U.S. bank to execute native transactions on Swift’s ledger. The transfers were also the first of their kind in the Middle East and Southeast Asia, respectively, though transaction values were not disclosed. The July-to-December pilot is expected to add DBS and United Overseas Bank later in September; Citi Token Services already processes about $1 billion in transactions.

Swift connects more than 11,500 financial institutions across over 200 markets, underpinning a network estimated to carry about $1.5 quadrillion in transactions annually. Its new Ethereum-compatible ledger is designed as an orchestration layer linking tokenized deposits issued on banks’ own systems. Final interbank settlement will continue through existing infrastructure, allowing lenders to retain compliance, credit and risk controls rather than replacing Swift or the banking system.

Swift said on July 9, 2026, that the ledger was ready for initial use, about nine months after unveiling the project on Sept. 29, 2025. Seventeen banks from six continents—including Citi, HSBC, Standard Chartered, UBS and Wells Fargo—are preparing to pilot live transactions. The trial will test whether tokenized deposits can move between institutions around the clock, including overnight and on weekends, while meeting the resilience, scalability and regulatory standards required for global payments.

Taurus, a Swiss digital-asset infrastructure provider, offers tokenization, custody and asset-management technology to banks and other financial institutions. Connecting its platforms to Swift’s blockchain-based shared ledger is intended to let institutions use bank-issued tokenized deposits for payments, linking distributed-ledger infrastructure with the financial messaging and operational networks already used by regulated market participants.

Taurus said institutional clients will be able to connect its tokenization and custody platforms directly to Swift’s shared ledger and settle payments with tokenized commercial-bank deposits. The first institutions are expected to complete their connections within days, with initial distributed-ledger transactions scheduled to begin within weeks. Taurus did not disclose the participating institutions, transaction values or a specific launch date.

Tokenised deposits are digital representations of commercial-bank money on distributed ledgers, designed to preserve the regulatory protections of bank deposits while enabling always-on transfers. Swift’s blockchain-based ledger seeks to connect tokenised-deposit platforms that would otherwise remain isolated within individual banks. The significance lies in interoperability: Swift is providing a shared orchestration layer for regulated digital money, rather than issuing a new currency or replacing the conventional banking system used for final settlement.

HSBC and Standard Chartered said on Aug. 19, 2026, that they completed the first live cross-border interbank transaction on Swift’s blockchain-based ledger. The banks did not disclose the amount or currency. Payment obligations were recorded on HSBC’s Tokenised Deposit Service and Standard Chartered’s tokenised-deposit infrastructure, then matched and netted through Swift’s ledger before final settlement over existing systems. The milestone followed Swift’s July 9 announcement that its ledger was ready for initial use, with 17 banks across six continents preparing to pilot live tokenised-deposit transactions.

Swift is a cross-border financial messaging network connecting more than 11,500 financial institutions across over 200 countries and territories. Its shared ledger uses a unified coordination layer to link tokenized bank deposits and could eventually extend to CBDCs and regulated digital assets, reducing platform fragmentation and supporting round-the-clock cross-border payments.

Swift announced on March 30, 2026, that it had completed the design and moved into the minimum viable product stage, using Hyperledger Besu to build an EVM-compatible architecture. On July 9, it said the ledger was ready for initial use, with 17 banks across six continents—including Citi, HSBC and UBS—set to pilot live transactions. Final settlement will continue through existing systems, and no investment amount has been disclosed.