UOB and HSBC completed live cross-border tokenised deposit transactions on Swift’s blockchain-based ledger, while Canada's TD tested tokenised payments through Project Agorá using real US dollar funds.

The Royal Bank of Canada (RBC) established a unified Global Transaction Banking business, while Indonesia and Singapore operationalised a local currency settlement framework. Swift extended the ISO 20022 structured-address migration timeline as banks continue adapting payment infrastructure for richer data and interoperability.

Read more on the week’s key developments:

1. UOB and HSBC complete live cross-border tokenised deposit transactions on Swift’s ledger

UOB and HSBC announced on 26 August that they had completed live cross-border transactions in Hong Kong dollars using Swift’s blockchain-based ledger, making UOB the first Singapore-headquartered bank to execute live transactions on the platform. The transactions involved the exchange of payment messages between UOB and HSBC through Swift’s ledger, with the resulting obligations recorded as tokenised deposit obligations on UOB’s tokenised-deposit infrastructure and HSBC’s Tokenised Deposit Service. Swift’s ledger matched and netted the obligations before final settlement through existing systems. UOB said it is preparing to execute Singapore dollar and US dollar transactions on the ledger in September 2026 with other partner banks.

The transactions test whether tokenised deposit obligations issued by different banks can be coordinated through a shared infrastructure layer before settlement through existing payment systems. Their significance for transaction banking lies in whether banks can connect separate digital-money systems without replacing established settlement arrangements. UOB’s planned SGD and USD transactions will test whether the model can support additional currencies and banking partners.

2. RBC establishes unified Global Transaction Banking business

Royal Bank of Canada (RBC) formally announced the establishment of Global Transaction Banking (GTB) as a unified business on 25 August. It combines transaction banking capabilities from Commercial Banking in Canada and the US, as well as RBC Capital Markets. The business will be jointly led by Sean Amato-Gauci, Group Head of Commercial Banking, and Derek Neldner, CEO and Group Head of RBC Capital Markets, as GTB Co-Heads. GTB will bring together product strategy, client coverage, technology and execution across payments, foreign exchange, trade finance and liquidity management. RBC said financial reporting will continue through its existing business segments.

The restructuring brings previously distributed transaction banking capabilities under a single strategy and leadership structure without creating a separately reported business line. The move is intended to coordinate relationship coverage, product delivery and digital platforms across Commercial Banking and Capital Markets clients.

3. TD completes real-value testing of tokenised payments through Project Agorá

The Toronto-Dominion Bank (TD) completed real-value testing of tokenised payments through Project Agorá, a public-private initiative convened by the Bank for International Settlements (BIS) and the Institute of International Finance. The project is exploring digital forms of central bank reserves and commercial bank deposits for wholesale cross-border payments. TD moved real US dollar funds between two domestic US entities, TD New York Branch and TD Bank, N.A., with BNY acting as clearing bank and intermediary. The wider testing involved 28 central banks and financial institutions across Asia, Europe and North America, covering approximately CHF 800,000 ($990,000) across 17 transaction scenarios.

The wider testing examined how tokenised commercial bank deposits and central bank reserves could support wholesale payment scenarios, including atomic settlement. TD’s particular transaction was domestic, however, and the test does not represent a commercial deployment of tokenised payments. The bank has not disclosed plans for production use, client participation or transaction volumes beyond the pilot.

4. Bank Indonesia and MAS operationalise local currency settlement framework

Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS) operationalised a framework on 31 August enabling bilateral transactions between Indonesia and Singapore to be settled in their respective local currencies. The Rupiah-Singapore Dollar Local Currency Transaction (LCT) Framework follows the signing of a memorandum of understanding in 2022 and an agreement on operational guidelines in April 2026. Under the framework, Appointed Cross Currency Dealers (ACCDs) will facilitate the settlement of current account transactions, direct investment transactions and cross-border payments in Indonesian rupiah and Singapore dollars. Nine Indonesian banks and three Singapore banks, including DBS, OCBC and UOB, have been appointed as ACCDs.

The framework gives companies trading between Indonesia and Singapore an additional option for settling eligible transactions directly in rupiah and Singapore dollars. For corporate treasurers, this may reduce reliance on third-currency conversion for qualifying flows. Adoption will depend on whether companies and banks integrate the mechanism into their existing trade, treasury and foreign-exchange processes.

5. Swift extends structured-address migration timeline for ISO 20022 payment messages

Swift agreed to extend the timeline for migrating to structured postal addresses in ISO 20022 payment messages after financial institutions, payment market infrastructures and domestic payment communities requested additional time to prepare. The requirement was part of Standards Release 2026 and had been scheduled for implementation in November. Swift said more than 98% of payment instructions are now sent using ISO 20022, but readiness for structured-address adoption remains uneven. It will provide an updated approach by December 2026 after consulting industry participants. Other payments changes under Standards Release 2026 will be deferred and phased separately, while securities, trade and other changes will take effect in the first quarter of 2027.

The extension shows that adoption of the ISO 20022 format has outpaced readiness to supply consistent structured data. Consistent data quality will be necessary before richer payment information can support greater automation, compliance screening and reconciliation.

6. Mizuho pursues legal action against Radiant World amid trade-finance concerns

Mizuho Bank has filed a case against the Singapore entity of iron ore trader Radiant World in Singapore’s Supreme Court, according to court records. The bank is seeking an injunction against Radiant World Corporation, although the court listing did not disclose details of the injunction sought. Separately, Singapore invoice-financing platform Incomlend filed a $34 million claim against Radiant World and its founder and said it was acting on behalf of the relevant funder, not as a creditor in the underlying transaction. Some banks have reportedly frozen Radiant World’s accounts, while trading houses have suspended relationships amid concerns over potentially invalid invoices used to obtain financing. Radiant World called the claims inaccurate and unsubstantiated and said it complied with due-diligence requirements agreed with its lenders. The Singapore Police Force confirmed that reports had been lodged and investigations were ongoing.

The case highlights the control challenges banks face when financing commodity trade flows through structures that rely heavily on underlying documentation, invoice validity and counterparty information. Trade-finance risk is often distributed across banks, fintech lenders and trading counterparties, meaning weaknesses at one point in the chain can affect multiple financiers.

7. Bank SMBC Indonesia partners with ADB on trade-finance risk sharing

PT Bank SMBC Indonesia Tbk partnered with the Asian Development Bank (ADB) under an unfunded risk-participation scheme to expand its trade and supply chain finance capabilities. Under the arrangement, announced on 27 August, ADB will act as a risk-sharing partner for Bank SMBC Indonesia’s trade and supply chain finance portfolio. The bank will continue to manage transaction origination, administration, portfolio management and monitoring. It will also retain responsibility for customer due diligence, regulatory compliance and portfolio oversight.

The arrangement shares eligible credit exposure with ADB without involving direct lending from the development finance institution. This could allow Bank SMBC Indonesia to support additional trade-finance transactions while retaining its client relationships and portfolio-management responsibilities.

8. FMO and TDB Group expand ETG sustainability-linked financing facility to $600 million

FMO, the Dutch entrepreneurial development bank, and the Trade and Development Bank Group (TDB Group) said on 25 August that they had expanded a sustainability-linked syndicated loan facility for ETC Group (ETG) to $600 million to support the company’s working capital needs and agricultural value-chain activities across Africa and Asia. The facility was initially signed at $394 million by FMO, TDB Group, DEG, FinDev Canada, the OPEC Fund for International Development and Proparco, with FMO Investment Management and ILX Fund participating. New participants in the expanded facility include the Asian Development Bank (ADB), Cassa Depositi e Prestiti (CDP), Finnfund, Impact Fund Denmark and OeEB. The financing links the interest margin to ETG’s achievement of agreed environmental and social performance targets.

The transaction shows how development finance institutions are using syndicated structures to mobilise larger pools of capital for companies operating across fragmented agricultural supply chains. By combining multiple investors under a shared risk and sustainability framework, the facility provides ETG with a broader financing base while linking funding conditions to measurable targets.

9. TDB Group concludes $800 million syndicated term loan facility

The Trade and Development Bank Group (TDB Group) concluded an $800 million syndicated term loan facility to support refinancing, trade finance and general corporate purposes. The facility comprises 1.5-year and three-year bullet repayment tranches and was coordinated by Mizuho Bank and Standard Bank, with Commerzbank acting as Facility Agent. The transaction was 1.4 times oversubscribed, attracting 21 financial institutions across Africa, Europe, the Middle East, Asia and North America.

The facility highlights how regional development banks are using syndicated funding markets to diversify their funding sources and maintain access to international liquidity providers. The participation of banks across multiple regions allows TDB to spread funding sources beyond its core markets while supporting its ability to finance trade and development activities.

10. EDC expands Trade Impact Program as Canadian exporters face tariff pressures

Export Development Canada (EDC) announced on 27 August that it would expand its Trade Impact Program (TIP) to support more Canadian exporters affected by tariffs and trade uncertainty. Launched in March 2025 with up to CAD 5 billion (about $3.6 billion) in additional financing and insurance capacity, the programme will broaden EDC’s risk appetite and support more businesses, including small and medium-sized exporters. It includes a CAD 700 million (about $505 million) direct-financing envelope with flexible terms designed to complement facilities provided by companies’ existing financial institutions. By August 2026, TIP had deployed approximately CAD 3 billion (about $2.2 billion) through more than 6,000 transactions supporting over 800 Canadian companies.

The expansion extends EDC’s role alongside commercial banks as tariffs affect exporters’ cash flow and access to working capital. Its guarantee products, insurance and direct financing are designed to complement bank facilities, helping companies preserve liquidity, manage non-payment risk and secure trade-related obligations.