HSBC and Standard Chartered have completed the first live tokenized deposit transfer utilizing SWIFT’s new blockchain-based ledger, a development that signals a move toward integrating digital assets into traditional financial infrastructure. The transaction, which took place on August 19, involved the exchange of payment messages between the banks’ respective tokenized deposit services, with the resulting obligations recorded on both systems.
SWIFT’s ledger functioned as an orchestration layer, netting obligations between HSBC and Standard Chartered before final settlement occurred through existing payment rails. This event is part of a broader pilot program involving 17 banks from six continents actively testing live transactions on the network.
The SWIFT ledger’s minimum viable product (MVP) is built on open-source foundations, employing an Ethereum Virtual Machine-compatible architecture based on Hyperledger Besu. Consensys developed the conceptual prototype for the project, announced in September 2025. According to SWIFT, the ledger is designed for integration with the broader digital asset ecosystem, with SWIFT managing the ledger to oversee transaction workflows, validate funding commitments, and coordinate interbank processes.
“HSBC’s interoperability transaction with Standard Chartered via SWIFT is a landmark moment for the promise of tokenised deposits,” said Lewis Sun, Head of Digital Currencies at HSBC. Mark Willis, Head of Emerging Payments, Transaction Services and Digital Assets at Standard Chartered, noted that “tokenized deposits are a key pillar of Standard Chartered’s digital assets strategy, which aims to build end-to-end solutions.”
Other banks piloting transactions on the network include ANZ, BNP Paribas, BNY, Citi, DBS, MUFG, UBS, and Wells Fargo. “With our new ledger capability, we’re extending the trust and stability of established finance into the frontiers of digital money,” said Thierry Chilosi, Chief Business Officer at Swift.
Meanwhile, American banks are developing their own infrastructure. The Clearing House is creating a tokenized deposit network named The Bridge, with participation from JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo. This network is slated for launch in the first half of 2027 and is intended to be accessible to all U.S. banks. However, Bank of America’s Mark Monaco has stated that clients are not yet demonstrating significant demand for tokenized deposits.
HSBC has previous experience with digital asset transactions, having participated in a S$400 million digital bond issuance with SGX and Temasek that reduced primary settlement time from five days to two. SWIFT itself is a critical component of global financial infrastructure, processing the equivalent of world GDP every two to three days across more than 200 markets, with 75% of payments reaching beneficiary banks within 10 minutes.
The successful execution of this live tokenized deposit transfer by HSBC and Standard Chartered on SWIFT’s platform represents a step toward integrating tokenized deposits into existing financial infrastructure. The ongoing piloting by 17 banks indicates industry adoption and testing of this technology. However, the development of competing networks like ‘The Bridge’ suggests a dynamic and potentially fragmented market for tokenized deposit solutions.
Why This Matters
The materials describe a narrow update: HSBC and Standard Chartered successfully executed a live tokenized deposit transaction on SWIFT’s new blockchain ledger. Client demand for tokenized deposits is not yet high, according to Bank of America.
Broader Context
Source materials place the factual news in this context: HSBC and Standard Chartered executed the first live tokenized deposit transaction on SWIFT’s blockchain-based ledger, the two banks said on August 19, six weeks after the network opened to an initial cohort of 17 banks.
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