UOB, HSBC Finalise Tokenised Hong Kong Dollar Payments
UOB and HSBC completed live cross-border Hong Kong dollar transactions using tokenised deposits on Swift's shared ledger. UOB marks the first Singapore-headquartered bank to use this system.
Cross-Border Transactions Completed
UOB and HSBC have completed live cross-border Hong Kong dollar transactions. They used tokenised deposits on Swift's blockchain-based shared ledger. Tokenised deposits represent a digital form of real money held by a central or commercial bank. UOB became the first Singapore-headquartered bank to conduct live transactions on this ledger.
Swift announced the ledger was ready for initial use in July 2026. Seventeen banks across six continents prepared to pilot tokenised deposit transactions.
Future Expansion and Goals
UOB plans to conduct Singapore dollar and US dollar transactions next. These will involve other partner banks on the ledger in September. The initiative examines how this technology improves liquidity management. It also supports round-the-clock interbank payments. The programme explores the shared-ledger infrastructure's potential.
This includes supporting domestic and cross-border payments across multiple currencies and banking partners. This infrastructure complements existing payment networks.
Industry Collaboration for Payment Infrastructure
So Lay Hua, Head of Group Transaction Banking at UOB, stated the live transactions demonstrate collaboration. Banks can advance next-generation payment infrastructure through shared-ledger solutions. Domestic transactions will offer insights into supporting 24/7 interbank payments.
Winnie Yap, Head of Global Payments Solutions at HSBC Singapore, noted the transaction shows tokenised deposits work securely. They are interoperable and designed for real-world payment flows across institutions.
This progress makes cross-border and multi-currency payments more efficient. It also makes them more responsive to a 24/7 economy. The Swift ledger matches and nets payment obligations among participating banks in real time. HSBC noted this could reduce friction in cross-bank transfers. Clients gain greater access to round-the-clock liquidity and treasury management. This applies across key Asian financial hubs, improving operational efficiency for regional businesses.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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