The DBS Citi Partnership has achieved another milestone as both Singapore’s DBS Bank and American financial company Citi have carried out their first tokenized cross-border payment over the weekend between Singapore and the US.
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The process was conducted over the weekend through tokenized payments via SWIFT’s Digital Ledger, DBS revealed on Monday. This demonstrates how blockchain technology can improve international money transfer processes.
According to DBS, the transaction took place within minutes, compared to normal cross-border transactions that usually take two business days. This is an indication of how tokenized deposits could revolutionize the world of international banking by reducing delays.
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DBS Citi Partnership Tests Tokenized Deposits
The DBS Citi partnership shows that major banks are currently exploring blockchain payment solutions but maintaining the payments within the framework of the regulated banking system.
Tokenized deposits are digital versions of money kept within traditional bank accounts. They can be transmitted via blockchain but are still linked to commercial bank deposits. This is what distinguishes tokenized deposits from cryptocurrencies, which are independent of the traditional banking system.
For DBS and Citi, the weekend deal illustrated how tokenized deposits could contribute to solving issues related to banking hours and traditional settlements.
This move follows efforts by other large banks to develop a similar system. In August, Standard Chartered and HSBC performed a tokenized cross-border deal with the help of SWIFT’s blockchain ledger.
Swift Expands Blockchain Payment Trials
The DBS-Citi partnership is part of a larger initiative from Swift to test blockchain technology for international transactions.
According to Swift, which has been developing its blockchain ledger, it has become ready for initial use in July. The plan is to test tokenized cross-border transactions with 17 major banks. The list of the banks involved includes DBS, Citi, HSBC, BNP Paribas, UBS, ANZ and Standard Chartered.
Tests will focus on the ability of the blockchain technology to enable fast cross-border settlements without having to change the current infrastructure of banks.
Banks Build Toward Tokenized Payments
The DBS-Citi partnership is also part of broader initiatives by the banks to build a digital financial system infrastructure.
Citi, along with other big American banks, intends to build a separate tokenized deposit system network for the first half of 2027 through The Clearing House.
On the other hand, DBS and JPMorgan unveiled plans in November 2025 to build a blockchain-based tokenization system for transferring deposits from one token ecosystem to another.
The recent DBS-Citi partnership deal suggests that the technology is increasingly being tested for the purposes of actual banking applications. Once the systems become widely used, they may facilitate fast international payments round-the-clock.
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