Mashreq and Citi Complete Live Tokenized Payment on Swift’s Blockchain Ledger

Mashreq has completed a live cross-border transaction with Citi using Swift’s blockchain ledger infrastructure, which is another step towards an always-on model for international payments.

The transaction uses bank-issued tokenized deposits to explore faster cross-border payment capabilities. By connecting tokenized deposits through Swift’s financial infrastructure, the initiative aims to reduce friction in international transfers while potentially improving payment speed, liquidity management and the movement of funds across markets.

Swift Builds a Blockchain Layer for Cross-Border Payments

The transaction forms part of Swift’s broader initiative to develop blockchain-based infrastructure for cross-border payments.

More than 40 financial institutions contributed to the design of Swift’s ledger, while 17 banks have been piloting tokenized deposit transactions since the ledger was announced as ready for use in July 2026.

The current Minimum Viable Product (MVP) phase is focused on demonstrating real-time, 24/7 cross-border payments.

Rather than replacing existing banking infrastructure, Swift’s ledger provides a shared orchestration layer designed to connect bank-issued tokenized deposits between participating institutions.

The approach could allow banks to extend payment availability beyond traditional banking hours, creating new possibilities for corporate treasury and liquidity management.

Tokenized Deposits Target Liquidity Efficiency

For businesses operating across multiple markets, round-the-clock payment infrastructure could offer greater flexibility in managing working capital and liquidity across regions.

The potential benefit extends beyond faster transfers. Continuous payment availability could allow businesses to respond more quickly to commercial opportunities and reduce the constraints created by traditional banking hours.

Vivek Batra, Head of Global Transaction Banking at Mashreq, said:

“At Mashreq, we believe the future of payments will be defined by greater speed, availability and interoperability, delivered through trusted financial infrastructure.”

Batra said the collaboration with Citi and Swift allows Mashreq to explore how next-generation payment capabilities can help clients move money more efficiently across markets and time zones while maintaining the security, resilience and governance standards expected in global finance.

He added that the initiative will help Mashreq participate in shaping international payments as demand for real-time liquidity movement grows.

Citi Links Traditional Payments With Digital Asset Infrastructure

For Citi, the transaction represents another effort to connect established payment infrastructure with emerging digital-asset networks.

Rizwan Shaikh, Head of Services for Middle East and Africa at Citi, said:

“Together with Mashreq and Swift, we are demonstrating that always-on, interoperable cross-border payments are already a reality.”

Shaikh said the milestone reflects Citi Services’ strategy of connecting traditional payments infrastructure with next-generation digital asset networks, with the aim of providing 24/7 payment availability and more efficient liquidity mobility for clients.

Banks Turn to Tokenized Deposits

The transaction also reflects growing interest among financial institutions in tokenized deposits and their potential role in modernizing financial-market infrastructure.

Unlike public digital assets, tokenized deposits represent regulated bank liabilities. They are designed to operate within existing banking, compliance, and settlement frameworks, potentially allowing banks to bring blockchain-based functionality into established financial infrastructure.

For Mashreq, the collaboration builds on its broader focus on digital assets and next-generation payment infrastructure.

The larger test for Swift’s ledger will be whether these individual connections can develop into an interoperable network capable of supporting 24/7 cross-border liquidity movement at institutional scale.