DBS and Citi pioneer weekend tokenised deposits for faster cross-border transfers

DBS Bank and Citibank have jointly unveiled a tokenised deposit payment system designed to accelerate cross-border transactions beyond conventional banking operating hours. The initiative addresses a persistent friction point in international finance, where standard settlement processes typically require up to two business days due to staggered time zones and institutional closures.

By tokenising deposits, the banks enable near-real-time settlement of cross-border payments on weekends and outside standard business hours, when traditional correspondent banking networks remain offline. The system converts deposit balances into digital tokens that can be transferred instantaneously across borders, bypassing the delays inherent in conventional settlement infrastructure.

The pilot programme represents a significant step toward modernising cross-border payments infrastructure in Asia, where time zone fragmentation and legacy banking hours have long constrained transaction speed. The development aligns with broader regional initiatives to streamline financial flows and reduce operational friction for businesses conducting trade across South and Southeast Asia.

Both institutions have positioned the tokenised deposit system as a pathway toward more efficient international finance, though further details regarding rollout timelines and participation criteria remain limited. The initiative underscores intensifying competition among major financial institutions to reshape settlement processes through distributed ledger and tokenisation technologies.