Singaporean banks DBS, OCBC and UOB have completed live domestic Singapore dollar (SGD) transactions using tokenised deposits on Swift’s blockchain-based ledger. It is the first time the banks have executed live interbank transactions using tokenised deposits.

A joint statement from the banks said that the move provides insights into "how shared-ledger technology could support round-the-clock interbank payments beyond traditional processing windows.”

By connecting tokenised deposit ecosystems across banks, Swift’s ledger addresses a "critical barrier" to the adoption of digital money, and will help with establishing interoperable payment networks, the statement added. 

The banks said that the technology could open up new services within corporate treasury, trade and digital commerce. Earlier this month DBS and Citi carried out a cross-border USD tokenised deposit between Singapore and New York. 

The transactions follow Swift’s announcement in July that its blockchain-based ledger was ready for initial use, with 17 banks across six continents preparing to conduct live transactions using tokenised deposits.