- ANZ becomes the first Australian bank to test cross-border tokenized deposit payment successfully.
- The financial institution utilized SWIFT’s shared ledger for the transaction, which also involved BHP and Citi.
ANZ, BHP, SWIFT, and Citi’s Successful Cross-Border Tokenized Deposit Payment
The live corporate treasury transaction used US dollar-denominated tokenized deposits and the SWIFT ledger to demonstrate how blockchain technology could reduce customer friction. The test used BHP’s existing ANZ account and banking channel to move value from Melbourne to New York in near real-time. Additionally, its completion between different time zones exhibited how institutional tokenized assets can operate seamlessly beyond traditional banking cut-off times without undue delays.
For SWIFT, the event marks another milestone, showcasing its blockchain-based shared ledger’s potential to drive the evolution of legacy banking rails. It also signals that the institution is here to stay amid the emergence of blockchain solutions that have presented themselves as challengers to its dominant position in international financial messaging.
Working Without Disruption and With Higher Certainty
ANZ Executive General Manager for Payments Services Nigel Dobson highlighted that the test proves that banks can leverage tokenized deposits through shared industry infrastructure to gain more efficient liquidity. Moreover, it shows the system can work without customers noticing and without disrupting how they do business with their banks.
“These payments demonstrate how tokenized deposits can move between banks through shared industry infrastructure and supporting more efficient liquidity while remaining completely invisible to customers,” said Dobson.
The same unlocks higher certainty that funds arrive in real time regardless of the transacting parties’ location, traditional banking hours, or time zone. The ANZ official believes large, multinational customers will mainly benefit from the advantage.
“Many large, multinational customers want to move money across countries, time zones and banks regardless of operating hours, and with the certainty it will arrive in near real-time,” added Dobson. “As the first Australian bank to use SWIFT’s ledger, our goal was to test how the benefits of new digital ledger technology can be delivered through the existing banking arrangements, using the accounts, channels and operational processes that our institutional customers already rely on.”
Fulfilling Clients’ Always-On Expectations
Meanwhile, Citi Head of Services for Japan, Asia North and Australia Kanika Thakur emphasized that the achievement fulfills clients’ always-on expectations from banks and other financial services providers as the industry moves toward interoperability between traditional and digital finance networks.
“This landmark transaction with ANZ, Swift and BHP demonstrates the power of a shared blockchain ledger to deliver infrastructure fit for the future by enabling interoperability between traditional and digital finance networks,” noted Thakur. “Advancing our digital cash and securities capabilities is core to our innovation agenda in Citi’s Services business as we build capabilities that support the evolution of our clients’ businesses and the environments in which they operate.”
