Tokenized deposits set to revolutionize global payment infrastructure

Major financial institutions are moving tokenized bank deposits beyond closed, bank-run networks and toward connected systems designed for cross-border payments. Officials involved in industry initiatives said the is to build always-on settlement rails that can support international transactions and reduce dependence on fragmented, proprietary ledgers.

The push is being led by work tied to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and the Bank for International Settlements (BIS). The stated ambition is to create 24/7 settlement infrastructure positioned to compete with the $33 trillion stablecoin market.

SWIFT expands tokenized settlement beyond single-bank rails

SWIFT has launched a blockchain-based shared ledger that SWIFT has launched a blockchain-based shared ledger that brings together seventeen banks across six continents. The shared platform is intended to enable live cross-border transactions, reflecting a shift from bank-specific networks toward a model where multiple institutions can transact using common infrastructure. By design, the effort focuses on interoperability, aiming to connect participating firms rather than keep tokenized deposit activity confined within separate systems. The emphasis on cross-border capability underscores how tokenized deposits are being positioned as a tool for international settlement, not only internal treasury movements. BIS Project Agora tests tokenized bank money and reserves In parallel, BIS-led Project Agora has completed seventeen scenarios involving real-value transactions totaling approximately $1 million. The project involves twenty-eight financial institutions and central banks across Asia, Europe, and North America, according to officials familiar with the work.

Worldwide Interbank Financial Telecommunication

The project’s objective is to bring tokenized commercial bank money together with central bank reserves on unified ledgers. Supporters argue that linking these forms of money on a single infrastructure could streamline settlement flows, while still preserving the role of central bank reserves in the payment system. US pilots grow as institutions seek regulated pathways In the United States, JPMorgan Chase’s Kinexys network has processed over $4 trillion in cumulative volume, the company has said. Separately, the Clearing House is piloting systems intended to connect blockchain-based transactions with real-time gross settlement networks.

Regulatory positions are also being clarified as adoption expands. The Federal Deposit Insurance Corporation has confirmed that tokenized deposits remain eligible for insurance, a point closely watched by banks assessing how new deposit forms fit within existing protections.

Together, these developments point to an industry effort to standardize and connect tokenized deposit systems so they can operate across institutions and borders. However, the initiatives described remain works in progress, and the pace of broader rollout will depend on how successfully shared ledgers and links to existing settlement networks can scale beyond pilots and limited participant groups.