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Banks on Swift's ledger are now making live tokenised deposit payments, while the UK's seven-bank sterling pilot has yet to report

Writer: Shawn Jhanji
Shawn Jhanji
Sep 21
5 min read

Updated: 6 days ago

Tokenised deposits, a digital form of ordinary bank money, have moved from tests into live payments in Singapore and between global banks over the past two weeks. HSBC and Lloyds are among the banks involved, but the UK's own sterling pilot has not published results.


On 13 September 2026, DBS, OCBC and UOB completed live Singapore dollar payments between the three banks using tokenised deposits over Swift's blockchain-based ledger, according to TechNode Global. The banks did not disclose values, volumes or a date for wider commercial use.


Tokenised deposits keep bank money inside the banking system while letting it move at any hour.

What a tokenised deposit is


A tokenised deposit is money held in an ordinary bank account, recorded as a digital token on a shared ledger. UK Finance describes it as "a digital representation of traditional sterling commercial bank money". The money stays inside the regulated banking system, with the same protections as a normal deposit, but it can move between accounts at any hour and can be programmed so that a payment only happens when a set condition is met.


That makes it a rival to stablecoins, which are tokens issued by private companies outside the banking system and backed by reserves. For a business, the difference is who stands behind the money: a regulated bank, or a stablecoin issuer.


Where live payments are happening


Swift said on 9 July 2026 that its ledger was ready for initial use, with 17 banks set to pilot live cross-border payments using tokenised deposits. Two are UK banks: HSBC and Lloyds Bank. The others include BNP Paribas, BNY, Citi, DBS, Standard Chartered, UBS and Wells Fargo. "This is an important milestone in the evolution of cross border payments," said Manish Kohli, head of global payments solutions at HSBC.


By 7 September, seven of the 17 were transacting on the ledger, according to Ledger Insights, which reported a weekend US dollar payment between DBS and Citi. Earlier transactions had involved Standard Chartered, HSBC and UOB.


Individual banks are also building their own. Wells Fargo said on 4 August that it will launch tokenised deposits for selected corporate and commercial clients in autumn 2026, and that its first use will be exchanging US dollars into British pounds, with settlement available at any time. The bank said it will widen the service to all eligible clients during 2027. "Tokenized deposits will enable Wells Fargo's corporate and commercial clients to move money between accounts and across borders with greater ease and increased speed," said Mike Santomassimo, its chief financial officer.


The UK pilot


The UK has its own programme, run by UK Finance. Seven institutions take part: Barclays, HSBC, Lloyds Banking Group, Monzo, NatWest, Nationwide and Santander, with support from Quant, EY and Linklaters. It is testing three uses: safer person-to-person payments on online marketplaces, faster remortgaging, and settling trades in digital assets.


UK Finance's project page, checked on 21 September 2026, still describes the pilot as running "until mid-2026". It does not report results or a next phase.


That is the gap worth watching. HSBC is already sending live tokenised deposit payments across borders through Swift, Lloyds Bank is in the same group, and the first use Wells Fargo plans for its own tokenised deposits involves sterling. The domestic sterling pilot, which is meant to show the benefits for UK customers and businesses, has passed its scheduled end date without a public update. Whether it moves into live service, and on what timetable, will decide whether UK companies get tokenised sterling payments from UK banks or mainly through international networks.


Key takeaways


  • Tokenised deposits are ordinary bank money recorded as tokens, and they compete with stablecoins issued outside the banking system.

  • DBS, OCBC and UOB made live Singapore dollar tokenised deposit payments over Swift's ledger on 13 September 2026, without disclosing values.

  • Seven of the 17 banks in Swift's pilot, including HSBC, were transacting by early September. Lloyds Bank is also in the group.

  • Wells Fargo plans to launch tokenised deposits in autumn 2026, starting with US dollar to British pound exchange.

  • The UK Finance sterling pilot with seven banks was due to run until mid-2026 and has not published results.


Sources


The first live transaction: HSBC and Standard Chartered, August 2026


In August 2026, Standard Chartered and HSBC completed the first live cross-border transaction on Swift's blockchain-based ledger, using it to exchange and settle tokenised deposit obligations between the two banks, as reported by Disruption Banking.


The transaction worked in three layers. The banks exchanged payment messages through Swift's ledger. The resulting obligations were recorded on HSBC's Tokenised Deposit Service and on Standard Chartered's own tokenised deposit infrastructure. Swift's ledger then matched and netted those obligations, and final settlement took place through existing payment systems rather than a new settlement network.


The model does not require every bank to adopt the same token standard or build bilateral links with each counterparty. Swift already connects more than 11,500 institutions worldwide, and the 17 banks named for its pilot span six continents.


Frequently asked questions


What is a tokenised deposit?

A tokenised deposit is money held in an ordinary bank account, recorded as a digital token on a shared ledger. It stays inside the regulated banking system with the same protections as a normal deposit, but can move between accounts at any hour and can be programmed to pay only when a set condition is met.

How are tokenised deposits different from stablecoins?

Tokenised deposits are issued by regulated banks and remain inside the banking system. Stablecoins are tokens issued by private companies outside the banking system and backed by reserves, so the difference is who stands behind the money.

Which banks are making live tokenised deposit payments on Swift's ledger?

Swift named 17 banks for its pilot on 9 July 2026, including HSBC, Lloyds Bank, BNP Paribas, BNY, Citi, DBS, Standard Chartered, UBS and Wells Fargo. By 7 September seven were transacting, and on 13 September 2026 DBS, OCBC and UOB completed live Singapore dollar payments over the ledger.

What is the UK Finance tokenised sterling deposits pilot?

It is a UK Finance programme with Barclays, HSBC, Lloyds Banking Group, Monzo, NatWest, Nationwide and Santander, supported by Quant, EY and Linklaters. It tests marketplace payments, faster remortgaging and settling trades in digital assets. It was described as running until mid-2026 and, as of 21 September 2026, had not published results or a next phase.

When will Wells Fargo launch tokenised deposits?

Wells Fargo said on 4 August 2026 that it will launch tokenised deposits for selected corporate and commercial clients in autumn 2026, starting with exchanging US dollars into British pounds. It plans to widen the service to all eligible clients during 2027.

How did the first live tokenised deposit transaction on Swift's ledger work?

In August 2026, HSBC and Standard Chartered exchanged payment messages through Swift's ledger. The obligations were recorded on each bank's own tokenised deposit platform, matched and netted on Swift's ledger, and finally settled through existing payment systems.


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