Global finance is accelerating its shift towards a blockchain-enabled future after HSBC and Ant International successfully trialled cross-border payments using tokenised deposits over the established SWIFT network.
The breakthrough, leveraging the new global messaging standard ISO 20022, signals that the decades-old financial infrastructure is ready to adopt distributed ledger technology (DLT), paving the way for 24/7, programmable payments for corporate clients worldwide.
The test focused on integrating Ant International’s blockchain technology and HSBC’s recently launched Tokenised Deposit Service with the SWIFT system.
Lewis Sun, Global Head of Domestic Payments and Emerging Payments at HSBC, stressed the importance of seamless connectivity between old and new systems.
“As we expand HSBC’s Tokenised Deposit Service, ensuring interoperability across both emerging blockchain networks and established payment rails is critical,” Sun said.
“By enabling tokenised deposits to move securely and efficiently across borders, we are giving our corporate clients more choice in how they manage liquidity globally; with the familiarity of traditional banking and the benefits of next-generation digital infrastructure.”
The key challenge for tokenised assets has been fitting them into the regulated framework of traditional finance. This trial addresses that by using the common SWIFT network and the globally mandated ISO 20022 messaging standard, which provides rich data for compliance.
Shirish Wadivkar, Global Head of Payments and Cash Management at SWIFT, highlighted the implications for operational integrity and regulatory comfort.
“We are excited to demonstrate how ISO 20022 data formats, when combined with new technologies like blockchain, bring significant value to the entire community,” Wadivkar said. “This integration not only speeds up payment processing but also enhances AML and sanctions screening.”
The three parties stated that the successful Proof of Concept (POC) delivers on the promise of tokenisation, offering “enhanced liquidity, programmable finance, and 24/7 real-time settlement” by creating a common technical protocol.
This standardisation effort is crucial, aiming to eliminate the need for complex, bespoke bilateral agreements every time a new digital asset system is launched.
Kelvin Li, General Manager of Platform Tech at Ant International, views the collaboration as a critical step in standardising the technology for global use.
“Since joining SWIFT’s network last year, we have worked closely to integrate our blockchain capabilities with their robust payment infrastructure,” Li said. “We hope our collaboration can guide the standardisation of tokenised deposits under ISO 20022.”
The financial giants confirmed they will continue to build on the POC’s success, exploring future pilot tests and use cases for commercial deployment.
