Real-time payments have transformed the way money moves. Over the past decade, initiatives such as Faster Payments, FedNow, Pix and TIPS have made instant, 24/7 transfer of value the norm. With the evolution of payments a central focus at Sibos this year, the industry will look ahead as the focus expands beyond speed, asking, how do we make money move faster and smarter?</em></p> While domestic payment flows have benefited from real-time systems, globally the picture remains uneven. Cross-border payments continue to face friction, highlighting the need for solutions that combine speed with intelligence and automation. One such solution is blockchain infrastructure, which presents a real opportunity to reimagine the frontier of payments.</p> Programmable payments: Today’s smart money</strong></p> Blockchain-based deposit accounts are enabling companies to make 24/7 real-time payments and cross-border transactions and allow for programmable payments today. Harnessing programmable payments enables companies to automate their often complex, multi-step payment processes. By pre-defining specific triggers, conditions and actions, incoming payments are automatically identified, conditions verified and then funds distributed to the pre-defined account(s). This automation not only speeds up payment processes, but also ensures reliability and efficiency in managing complex payment flows. The technology also provides the ability to embed software in payment platforms and make money smart.</p> Deposit tokens: The next frontier</strong></p> While blockchain deposit accounts and their smart money benefits have been around for a few years now, the next stage of payments innovation includes deposit tokens. Deposit tokens are digital representations of bank deposits that operate on public blockchain networks. They’re intended to enable institutions, primarily, to complete public blockchain transactions. Potential use cases include facilitating payment and redemption of digital assets such as tokenised money market funds, enabling 24/7/365 cross-border payments, and serving as on-chain collateral.</p> Deposit tokens are issued by regulated institutions, and are designed for compatibility with existing financial infrastructure. They may in time receive the same treatment as other bank deposits, including potential eligibility for deposit insurance. Ultimately, deposit tokens provide clients and their customers with a secure, credible way to transact on public blockchain using a bank-issued digital cash equivalent.</p> The European Banking Authority’s 2024 report1</sup> states that nearly one in five financial institutions surveyed expect to issue deposit tokens in the next one to two years. The OECD has similarly highlighted the benefits of tokenisation2</sup> – greater efficiency, transparency, liquidity and shortened settlement cycles – while acknowledging that the technology is just starting to scale with adoption limited to a few pilot use cases.</p> From instant to intelligent</strong></p> While the advantages of blockchain-based payments are clear, they serve different yet complementary roles to real-time payments in the future of money. Real-time systems will continue to drive the retail economy, providing fast, reliable and always-on money movement for consumers. In comparison, blockchain deposit accounts and deposit tokens extend these capabilities into the institutional world, enabling programmability, conditional settlement and automation for complex workflows and large-scale cross-border transfers. Together, they form a unified, forward-looking payments ecosystem.</p> Conversations around the digital evolution of payments as well as market infrastructures underscore a pivotal shift. By integrating the speed of real-time payments with the programmability of blockchain infrastructure, we can shape a payments ecosystem that is faster, smarter and more inclusive for all.</p> I’m excited to be part of this transformative industry journey, and look forward to seeing collaboration between market players to shape the future of money.</p> This blog is part of a series from the participants of the </em>STAR scholarship programme</em></a>, which brings together women in finance from around the world and champions the leaders of tomorrow. The opinions expressed reflect the personal views of the author and not their organisation, Sibos or Swift.</em></p> Sources</span></strong></p> 1. https://www.eba.europa.eu/sites/default/files/2024-12/4b294386-1235-463f-b9b5-08f255160435/Report%20on%20Tokenised%20deposits.pdf</a></p> 2. https://www.oecd.org/en/publications/tokenisation-of-assets-and-distributed-ledger-technologies-in-financial-markets_40e7f217-en.html</a></p> </div>