DBS and Citi Complete Instant Cross-Border Tokenized Payment

DBS and Citi successfully tested instant USD cross-border payments using tokenized deposits and Swift Digital Ledger, cutting settlement from days to minutes.

The transaction took place on Saturday, September 5, between DBS and Citi’s New York branch, settling within minutes via the Swift Digital Ledger.

From Two Business Days to a Few Minutes

This shift represents more than just a boost in speed; it removes the long-standing reliance on traditional banking hours. Multinational corporations frequently manage cash flows across various time zones, where weekends and bank holidays often stall settlements.

During the test conducted by DBS and Citi, the U.S. dollar payment was completed in minutes. In contrast, DBS notes that the standard process for cross-border transfers typically takes up to two business days.

This capability allows corporate treasury departments to shift liquidity between subsidiaries and markets whenever necessary, rather than waiting for the banking system to open on Monday. The benefits are particularly immediate for e-commerce and digital services, where business operations never stop.

Tokenization Accelerates Bank Deposit Movement

The technological model used here differs significantly from payments made via USDC, USDT, or other stablecoins.

A tokenized deposit acts as a digital mirror of a deposit already held by a client in a commercial bank. Instead of transferring value solely through legacy banking infrastructure, it can be represented and moved via a digital ledger.

This approach allows banks to harness blockchain advantages—such as 24/7 settlement and programmability—without requiring corporate clients to step outside the regulated deposit system.

The Swift Digital Ledger serves as the infrastructure layer connecting traditional banking systems with these new tokenized networks. DBS stands as the only Asia-headquartered bank among the 12 institutions in the core group designing the system’s architecture.

Banks Bring Blockchain to Corporate Payments

This transaction occurs as tokenization matures from experimental pilots into real-world banking operations.

DBS is already expanding its own infrastructure through DBS Token Services, launched in 2024 to facilitate programmable and instant value transfers. Separately, the bank is collaborating with J.P. Morgan’s Kinexys on a model for transferring tokenized deposits across different banking blockchains.

Corporate interest is also rising. According to a DBS survey, half of the financial executives interviewed are exploring blockchain solutions as part of their toolkit for managing liquidity and foreign exchange risk.

Asia Becomes the Proving Ground for 24/7 Payments

The massive scale of cross-border cash flows makes the region a natural market for this infrastructure. Outbound cross-border payments from Asia are projected to reach $24 trillion by 2033, up from $13.5 trillion in 2025.

For banks, the stakes go beyond reducing the time of a single transfer. If tokenized deposits can move seamlessly between different banks and countries, corporate clients can maintain lower liquidity buffers in individual jurisdictions and react faster to shifts in currency markets.

The next hurdle is scalability. While a single successful transaction proves technical viability, widespread adoption will depend on how many banks, currencies, and jurisdictions can be integrated into a compatible infrastructure. This will ultimately determine if 24/7 settlement remains a niche service or fundamentally changes how global companies manage their capital.