Ant International, in collaboration with the International Swaps and Derivatives Association (ISDA), has published a white paper under the guidance of the Monetary Authority of Singapore's "Project Guardian." The report, titled "Application of Tokenized Deposits in Transaction Banking," lays out principles and standards for integrating tokenized deposits and distributed ledger technology in cross-border payments and foreign exchange settlements.
Tokenized deposits aim to cut transaction costs by 12.5%, potentially saving enterprises over $50 billion by 2030. ISDA has crafted specific guidelines for the application of tokenized deposits in forex trading to support regulatory compliance.
The white paper includes systemized methods for managing risks related to payment systems using shared ledger technology. A real-world case study validates the feasibility and benefits, such as Ant International's 'Whale' platform, which enables immediate forex settlements in multiple currencies using blockchain and AI, reducing settlement time from days to minutes.
Several major banks, including Citi, HSBC, and Standard Chartered, have partnered with Ant International to implement tokenized deposit services via the Whale platform. Both Ant International and ISDA plan to extend the framework's application, integrating it into existing banking infrastructures to benefit businesses of all sizes.
