HSBC, Standard Chartered execute first live banking transaction on Swift’s 24/7 ledger
HSBC and Standard Chartered have successfully completed the first live banking transaction using Swift's new 24/7 ledger system. This pilot project aims to modernize cross-border payments by using tokenized deposits to increase settlement speed and reduce liquidity costs.
Why it matters
The integration of blockchain-based ledger technology into Swift's massive global network represents a significant shift toward digitizing traditional banking infrastructure to compete with stablecoins and decentralized finance.
The two banks exchanged payment messages through Swift's ledger, which matched and netted the resulting obligations before final settlement took place through existing systems.
The transaction is part of a pilot announced by the bank-owned messaging network used by more than 11,500 financial institutions in July , when 17 lenders across six continents signed up to pioneer live transactions using tokenized deposits for 24/7 payments.
Banks are looking for ways to compete with the speed and ease-of-use that blockchain enables and which is driving the adoption of stablecoins as a means of international payment. In traditional channels, every bank in a cross-border payment chain ties up liquidity. That drives up costs and slows settlement. Switching to a shared ledger makes debits and credits simultaneous, cutting both.
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