Mashreq and Citi have completed a live cross-border transaction using tokenised deposits on Swift's blockchain-based ledger.
The transfer used deposits issued and tokenised by the participating banks, with Swift's ledger serving as a shared orchestration layer that links these tokenised deposits across institutions. The aim is to test whether this setup can reduce friction in international payments and support faster movement of funds, more efficient use of liquidity, and availability outside standard banking hours.
Part of Swift's ledger pilot
The transaction is part of a broader Swift initiative. More than 40 financial institutions contributed to the design of the ledger. Since Swift declared it ready for use in July 2026, 17 banks have been piloting it for tokenised deposit transactions. The current minimum viable product (MVP) phase focuses on demonstrating real-time cross-border payments on a 24/7 basis.
The model connects tokenised deposits to Swift's existing financial messaging infrastructure. As a result, participating banks can test continuous cross-border transfers within a network they already use, rather than through a separate system.
Both banks bring established cross-border networks to the pilot. Mashreq operates across the UAE and in markets including Oman, Qatar, Kuwait, Bahrain, Egypt, Pakistan, Türkiye, India, the UK, the US, and Hong Kong. Citi does business in more than 180 countries and jurisdictions.
Why tokenised deposits
Tokenised deposits differ from public digital assets because they represent regulated bank liabilities. They are designed to function within existing banking, compliance, and settlement frameworks. This feature underpins growing interest across the banking sector in the role they could play in financial market infrastructure. Additionally, Mashreq said the collaboration builds on its focus on digital assets and new payment models.
Implications for treasury and liquidity
For corporate clients and financial institutions, the companies point to possible gains in liquidity management and treasury operations. Extending payment availability beyond traditional banking hours could give businesses more flexibility in managing working capital and allocating liquidity across regions. It could also help them act on commercial opportunities with less delay.
Vivek Batra, Head of Global Transaction Banking at Mashreq, said the bank expects speed, availability, and interoperability to define the future of payments. The official added that the project allows Mashreq to explore how clients can move money across markets and time zones while keeping security, resilience, and governance standards in place. Furthermore, Batra noted that demand for real-time liquidity movement is rising as businesses increasingly operate in a digital, always-on economy.
