Tokenisation could ease liquidity bottlenecks in next phase of cross-border payments, say panellists
AI-summarised brief · reviewed before publication
Panellists from SWIFT, DBS, and Standard Chartered discussed the next phase of cross-border payments, highlighting liquidity as a major hurdle. Tokenisation could provide a more efficient way to fund transactions, complementing existing systems. Around 75% of cross-border SWIFT payments reach the receiving institution within 10 minutes, but delays occur during the domestic "last mile". Local regulations and foreign exchange processes contribute to these delays, with liquidity constraints remaining a challenge. Tokenisation may improve capital efficiency and ensure round-the-clock settlement. The industry's next challenge is improving customer experience by tackling liquidity constraints.
💡 Why It Matters
- · Tokenisation can unlock more efficient use of banks' capital, allowing them to free up idle cash balances.
- · By mobilising tokenised cash or collateral, banks can ensure payments can be settled quickly without having to maintain large cash reserves.