Singapore Emerges as the Launchpad for Global Deposit Tokenization

UBS and Ant International are joining forces to launch a deposit-tokenization initiative in Singapore, marking one of the most ambitious attempts yet to modernize cross-border treasury flows using blockchain.

Their partnership, formalized through a Memorandum of Understanding signed in the city-state, showcases why Singapore has become the preferred testing ground for institutional digital-asset innovation. Clear regulatory frameworks, advanced supervisory pilots and the Monetary Authority of Singapore’s willingness to experiment have made it Asia’s most important hub for tokenized finance.

By choosing Singapore, the two companies are positioning their project within a jurisdiction that has already built momentum with initiatives like Project Guardian and Project Orchid. For UBS and Ant — both of which operate global payment and treasury networks — the country offers a stable, compliant environment to pilot blockchain-based settlement systems that would be far more difficult to test at scale in less regulated markets.

Tokenized Deposits Promise Real-Time, 24/7 Payments

At the heart of the collaboration is the use of tokenized deposits issued by UBS on a permissioned digital ledger. These deposits act as blockchain-based versions of bank money, but with a key upgrade: they allow for continuous, real-time settlement rather than being restricted to bank operating hours.

Ant International, which oversees the vast Alipay+ ecosystem, plans to use UBS Digital Cash to streamline internal treasury transfers across multiple regions, replacing legacy banking rails that are often slowed by cut-offs, fragmentation and multi-day settlement timelines.

With tokenized deposits, liquidity can be synchronized between subsidiaries in seconds. For corporations with global footprints, this eliminates one of the biggest bottlenecks in treasury operations: inter-entity fund transfers that previously depended on manual processes and inconsistent cross-border infrastructure.

UBS Singapore Country Head Young Jin Yee noted that merging UBS’s digital-asset research with Ant’s blockchain capabilities enables a multicurrency settlement environment with new standards for transparency, speed and operational efficiency. Ant International emphasized that the project reflects a shared belief that blockchain-based settlement will play a decisive role in the future of cross-border payments.

The initiative stands out as one of the strongest real-world examples of major financial and payment institutions adopting tokenized deposits as a scalable replacement for traditional treasury systems — and potentially even for certain stablecoin-driven workflows.

A Blueprint for the Future of Bank Money and Cross-Border Finance

Singapore’s leadership in the digital-asset space gives this partnership broader global significance. Through its 2024 asset-tokenization frameworks, MAS has created a regulated environment that encourages large institutions to test new payment architectures at scale.

With UBS and Ant International now deploying tokenized deposits in the market, Singapore is cementing its position as a frontrunner in shaping how banks and global corporations will move money in the future.

This initiative reflects a fundamental shift in financial infrastructure. Instead of relying on settlement systems built decades ago, tokenized deposits enable programmable, transparent and near-instant liquidity across borders.

The result is a blueprint for a world where global treasury operations — traditionally defined by delays and rigid timelines — can operate continuously, securely and at unprecedented speed.

If successful, this pilot could be one of the most important inflection points in modern financial history. Tokenized deposits bridge the gap between traditional banking and blockchain without compromising regulatory safeguards.

They carry the stability of bank-issued money while offering the programmability and speed of digital assets. Should Singapore’s model be replicated globally, payment networks operating today on a patchwork of outdated rails may eventually give way to unified, always-on digital settlement layers that redefine how value moves worldwide.