Citi has taken a major step in advancing always-on payments through live transactions on Swift’s blockchain-based ledger. The bank worked with First Abu Dhabi Bank (FAB) and Oversea-Chinese Banking Corporation (OCBC) on the initiative. Citi became the first U.S. bank to conduct live native ledger transactions. Moreover, the transactions mark important milestones across the Middle East and Southeast Asia.
Citi completed the first live transaction in the Middle East with FAB. It also completed the first transaction in Southeast Asia with OCBC. The bank expects to conduct similar transactions with additional collaborating banks. These include DBS and United Overseas Bank (UOB) later this month.
The initiative supports Citi’s wider strategy for developing always-on payments. It also strengthens the bank’s focus on cross-currency and interoperable payment solutions.
Debopama Sen, Head of Payments within Citi’s Services business said: “We are proud to be a leader in this pivotal initiative, working alongside Swift and our esteemed bank collaborators to continue to transform the landscape of always-on payments, settlements and liquidity. This pilot represents a crucial step in exploring how we can leverage the power of shared ledger technology to create a more efficient, interoperable, and always-on global financial system that supports both payments and collateral movement. Our active engagement in the design and execution of Swift’s ledger MVP ensures that our clients’ interests are at the forefront as we shape the future of interoperability between digital and traditional currencies.”
Building a Connected Digital Payments Network
Citi’s Services business continues to expand its digital asset capabilities across cash and securities. The latest initiative builds on several recently integrated solutions. These solutions include 24/7 USD Clearing, Citi Token Services, and Citi Custody+. Together, they support real-time and multi-bank financial activity. The solutions also target cross-border payments and securities management. Additionally, they support collateral management for corporate and institutional clients.
Citi’s 24/7 USD Clearing solution currently serves more than 300 bank clients globally. Meanwhile, Citi Token Services processes around $1 billion in transactions through its blockchain-based platform. These developments reflect Citi Services’ focus on instant financial activity. They also support real-time and always-on payments across global markets.
Citi is also targeting the linking of tokenized networks with traditional payment infrastructure. This can allow financial institutions to be open outside of traditional banking hours. The transactions live demonstrate the potential for distributed ledger technology to sustain ongoing payment activity. They also see chances to speed up settlement in overseas markets.
Traditional payment systems often have cut-off times and are closed on weekends. But shared ledger infrastructure can help enable around-the-clock payment and settlement activity. The pilot transactions will be part of a controlled proof of concept. The program is slated to run from July to December 2026.
Swift Ledger Supports Cross-Border Transactions
Shared blockchain infrastructure can improve the movement of tokenized deposits. It can also support securities and related financial assets. As a result, financial institutions could access more efficient cross-border payment processes. They could also improve the speed of securities settlements. Swift’s blockchain ledger pilot provides a practical example of this approach. The initiative focuses on interoperability across cash and securities markets.
The model aims to combine blockchain-based payment commitments with established settlement structures. It uses tokenized deposits for instant payment commitments. At the same time, the model continues to leverage established settlement mechanisms. These include real-time gross settlement (RTGS) for final settlement.The approach could provide several benefits for financial institutions. These include 24/7/365 service and faster credit for beneficiaries.
It could also improve liquidity efficiency for participating banks. Therefore, the model could support stronger payment infrastructure across global financial markets. Swift’s ledger initiative seeks to connect traditional finance with digital assets. It uses shared blockchain infrastructure to support instant payment commitments. At the same time, the model maintains established settlement principles. This combination could help bridge conventional banking systems with emerging digital networks.
DBS and UOB Expand the Initiative
DBS is also preparing to participate in the initiative. The bank expects to conduct a U.S. dollar transaction with Citi on Swift’s ledger.
Rachel Chew, Group Chief Operating Officer and Co-Head of Digital Assets, Global Transaction Services at DBS, said: “Initiatives such as the Swift Digital Ledger are bridging traditional banking infrastructures with emerging digital networks. By fostering deeper interoperability across these different ecosystems, we can achieve seamless transactions and establish common standards, which are essential for the wider adoption of tokenized money.”
OCBC has already completed live pilot transactions with Citi. The bank views the development as an important step for cross-border digital money movement.
Carmen Chan, Deputy Head of Global Transaction Banking at Singapore’s OCBC, added: “Our successful live pilot transactions with Citi marks an important step towards enabling bank-issued digital money to move efficiently and securely across borders. For corporates, this could mean faster access to funds, greater payment certainty and improved liquidity management in an increasingly always-on economy. Interoperable shared infrastructure can help connect banking networks across jurisdictions while preserving the trust and reach of the global banking system. We look forward to continuing our collaboration with Swift and our banking partners to advance more efficient, transparent and resilient global payments.”
UOB will also contribute to the next stage of the initiative. Its upcoming transaction with Citi will use Swift’s ledger for a U.S. dollar payment.
So Lay Hua, Head of Group Transaction Banking, UOB said, “Our upcoming U.S. dollar transaction with Citi on Swift’s ledger underscores the power of industry collaboration in building the next generation of payment infrastructure. These transactions demonstrate how banks can enable faster, more seamless and interoperable payment flows across markets. As the One Bank for ASEAN, UOB is committed to contributing our regional network and transaction banking expertise to shape the future of payments.”
FAB, OCBC, DBS and UOB are now also included in the initiative, which broadens its reach. It also shows increasing cooperation between major financial institutions. Overall, Citi’s latest moves highlight the changing role of blockchain in global payments. The initiative also points out that shared infrastructure can enable more connected and faster financial services.
Banks continue to explore tokenized money and digital assets as well, so the ability to work together is still important. Projects like Swift’s ledger could help define the next generation of global payment infrastructure.
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News Source: Businesswire.com
