Singapore banks complete tokenised deposit pilots

DBS, OCBC, and UOB tested the technology for payments beyond traditional processing hours. 

DBS, OCBC, and UOB have completed their first live domestic Singapore dollar (SGD) interbank transactions using tokenised deposits on Swift's blockchain-based ledger. 

The banks are testing the technology for payments beyond traditional processing hours, including round-the-clock domestic transactions.

Pilots have shown that clients can make USD and SGD payments at any time, including weekends, said Rachel Chew, COO and Co-Head of Digital Assets, Global Transaction Services at DBS.

All three banks said the infrastructure could eventually support applications in corporate treasury, trade, and digital commerce.

The transactions follow Swift’s July announcement that its blockchain-based platform was ready for initial use, with 17 banks across six continents preparing to conduct live transactions using tokenised deposits.

Payment messages were exchanged between DBS, OCBC, and UOB through the ledger, with resulting obligations recorded on each institution’s tokenised-deposit infrastructure.

Swift’s system matched and netted the obligations between the banks before final settlement was completed through existing systems.

Tokenised deposits are regular deposits represented digitally using blockchain or distributed-ledger technology and issued by regulated banks.