HSBC and Standard Chartered complete first cross-border transaction using SWIFT’s blockchain ledger

HSBC and Standard Chartered have successfully completed a cross-border transaction settlement using SWIFT’s newly launched blockchain ledger, marking a major development in institutional cryptocurrency operations. Both UK-based banks enrolled in the initial phase of SWIFT’s pilot program, which focuses on deploying tokenized deposit platforms for faster and more secure global transactions.

HSBC and Standard Chartered tap SWIFT’s blockchain

SWIFT, the global financial messaging network, introduced its native blockchain ledger earlier this year with the goal of modernizing cross-border settlements and promoting interoperability across various financial institutions. The initial pilot includes two of the largest UK banks, HSBC and Standard Chartered, who have deployed their tokenized deposit services on the SWIFT blockchain infrastructure.

HSBC and Standard Chartered have longstanding partnerships with Ripple, the company behind XRP, particularly through collaborations related to digital asset custody solutions. HSBC operates its Tokenised Deposit Service (TDS), while Standard Chartered uses its own tokenised-deposit infrastructure, both leveraging SWIFT’s distributed ledger as a secure backbone for interbank settlements.

The partnership extends beyond basic banking services, as HSBC has deepened its involvement in digital asset management using Metaco, a Swiss digital-asset custody firm acquired by Ripple in 2023.

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Mini dictionary: Metaco is a Swiss firm specializing in secure digital asset custody and orchestration solutions for institutional clients. Its Harmonize platform enables banks to handle tokenized assets and related services securely. Ripple acquired Metaco in 2023 to expand its institutional product suite.

HSBC utilizes Metaco’s Harmonize platform to manage custody for digital assets such as tokenized securities, providing these services directly to institutional clients. Public announcements confirm the partnership is already operational, granting clients advanced custody and access to Ripple’s On-Demand Liquidity (ODL) solution in select cases.

Reports also suggest that Standard Chartered’s digital asset arm, Zodia Custody, has been linked to the broader Metaco network for custodial solutions.

Clarifying Ripple’s role in cross-border settlements

While both banks leverage Ripple’s infrastructure for certain digital asset custody operations, HSBC’s partnership through Metaco does not directly involve ODL, which utilizes XRP for real-time liquidity in global payment flows. HSBC’s custody mandate with Metaco operates separately from Ripple’s ODL technology.

XRP functions as a bridge asset by facilitating instant cross-border payments, in contrast to SWIFT’s conventional processing times, which range from one to four business days. However, there is no evidence that HSBC has tested Ripple’s full ODL service as part of the current SWIFT pilot. Instead, the focus of this pilot remains on testing SWIFT’s interoperability and blockchain orchestration capabilities.

First SWIFT blockchain transaction executed

Today, HSBC and Standard Chartered exchanged payment messages via SWIFT’s blockchain ledger, recording the resulting obligations as tokenized deposits on their respective platforms. SWIFT’s ledger acted as a secure orchestration layer, allowing obligations to be matched and netted prior to final settlement through existing banking infrastructure.

The successful completion of this cross-border transaction demonstrates significant cost savings and faster settlement compared to traditional systems.

This event sets a precedent for cross-border settlements in a sector that continues to evolve rapidly, with blockchain technology offering scalable and secure solutions for global financial flows.