Banking giant HSBC and Singapore-based Ant International successfully connected Ant’s blockchain infrastructure to Swift’s network between HSBC Singapore and Hong Kong via HSBC’s tokenized deposit services. It enabled real-time cross-border treasury management.
The test was the first example of leveraging the Swift network and ISO 20022 messaging standard.
Using ISO 20022 enables tokenized deposits by making blockchain transactions interoperable with legacy systems. The landmark project, announced on December 11, could standardize international blockchain-based payments and corporate treasury management. In the most recent pilot run, Swift and HSBC introduced a common protocol, removing the need for Ant International to establish individual bilateral arrangements with banks.
The platform enables digital money issuers to use the financial messaging standard and Swift’s network to simplify adoption for banks and external clients, without creating separate connections with each financial institution, while strengthening interoperability between traditional fiat and digital money. Swift’s messaging platform, services, and products connect over 11,500 banking and securities entities, corporate clients, and market infrastructure providers across over 200 jurisdictions.
Yet, all were not sold on the new plan: “HSBC’s recent prosaic trial of blockchain technologies [developed by Ant International and UBS, using its own ISO and Swift messaging protocols] might shave a fraction of one percent off financial firms’ costs, says Dr. Bryane Michael, an economist at Oxford University. “Competing financial firms still have a lot of room to innovate before blockchain-based inter-bank payments become the norm.”
Last year, Ant joined Swift to enhance cross-border payment transparency by testing end-to-end transaction tracking across banks, payment service providers, and e-wallets.
Ant International—a spin-off of mainland China’s fintech Ant Group and Alibaba Group affiliate—has collaborated with several banks on its tokenization projects. In November, it announced its collaboration with Swiss bank UBS on UBS’s blockchain payments platform to enhance Ant International’s global treasury operations. Ant International is also involved in the Hong Kong central bank-led digital asset project, spearheaded by the de facto central bank, the Hong Kong Monetary Authority.
