Banks across Asia are accelerating the adoption of tokenisation, with new live transactions in Singapore and Malaysia suggesting the technology is moving beyond proof-of-concepts into core payment and capital market infrastructure.
Last week, Singapore’s UOB became the first Singapore-headquartered bank to complete live cross-border transactions using tokenised deposits on Swift’s blockchain-based ledger, while Malaysia’s CIMB completed the country’s first tokenised deposit settlement for a tokenised sukuk issuance worth RM1.68 billion. The announcements highlight how regulated commercial bank money is increasingly being used on blockchain rails for payments and securities settlement.
Unlike stablecoins or cryptocurrencies, tokenised deposits are digital representations of customer deposits issued by regulated commercial banks. They allow money held within the banking system to be transferred and settled on distributed ledger infrastructure while remaining subject to existing banking regulation.
UOB’s transaction marks one of the first live commercial uses of Swift’s blockchain-based ledger, which was launched earlier this year with 17 global banks. The Singapore lender executed Hong Kong dollar transactions with HSBC, demonstrating that tokenised deposits can move between banks over Swift’s existing network while supporting always-on, cross-border settlement.
Meanwhile, CIMB’s pilot settled a RM1.68 billion sukuk issuance using tokenised deposits issued by CIMB Islamic Bank, marking Malaysia’s first end-to-end settlement of a tokenised debt instrument with commercial bank money. The pilot was conducted under Bank Negara Malaysia’s Digital Asset Innovation Hub, which is testing new financial market infrastructure for regulated digital assets.
Singapore has emerged as one of the region’s leading tokenisation hubs through initiatives involving DBS, UOB, HSBC and Standard Chartered, while Hong Kong has expanded tokenised deposit and digital asset pilots through the Hong Kong Monetary Authority. Malaysia’s Digital Asset Innovation Hub is similarly positioning the country’s banking sector to test tokenised deposits, bonds and Islamic finance instruments within a regulated environment.
This momentum aligns with global efforts to modernise financial infrastructure. Swift’s blockchain ledger follows a series of international tokenisation initiatives, including the Bank for International Settlements’ Project Agorá, which is exploring how tokenised commercial bank deposits and central bank money can work together for cross-border payments.
