HSBC, StanChart complete first live Swift blockchain transaction

HSBC and Standard Chartered have completed the first live cross-border transaction using Swift's blockchain-based ledger, a development that demonstrates early interoperability between banks' separate tokenized deposit systems for international payments. The transaction, executed recently in mid-August, marks a tangible step toward the industry's goal of faster, around-the-clock cross-border settlements using digital representations of bank money.

The transaction mechanics involved a hybrid approach. Payment messages were exchanged between the two banks via Swift's ledger. The resulting financial obligations were then recorded as tokenized deposit claims on each institution's own infrastructure: HSBC's Tokenised Deposit Service and Standard Chartered's tokenized deposit platform. Swift's ledger functioned as an orchestration and netting layer, matching these obligations before the final settlement was processed through existing payment systems. This design allows banks to maintain their own compliance, risk, and operational controls while coordinating transactions across different platforms.

The test occurs about a month after Swift announced in July that its blockchain-based...