Global transaction banking faces a $120B problem: tokenized bank deposits can help solve it.
- Harvey
- 5 hours ago
- 4 min read
Corporate treasurers move more than $23 trillion dollars across borders every year, equivalent to a quarter of global GDP. Yet the underlying infrastructure that supports this flow is outdated, fragmented and expensive. The result is a cost burden of roughly $120 billion dollars per year on cross-border payments alone per JPMorgan’s report.
These costs are fed through multi-layered correspondent banking chains, trapped liquidity, opaque FX spreads, time-zone driven delays and inconsistent compliance regimes.
Solution?
Tokenized bank deposits.
ISDA and Ant International released an industry report under MAS Project Guardian, supported by BNY, HSBC and OCBC, that outlines a credible pathway to solve this massive annual cost. Their proposal focuses on a shared ledger infrastructure and tokenized bank deposits that can deliver real-time settlement and cut structural friction out of global transaction banking.
The ISDA and Ant International report argues that tokenized bank liabilities on a shared ledger can replace today’s sequential, multi-intermediary payment flows with a real-time, atomic settlement process.
In this Weekly Research note, I will unpack:
7 contributors to the massive $120B annual cost
Solutions provided by tokenized bank deposits
Current state of the tokenized deposits market
Let’s dive in.
7 drivers of the $120B cost and tokenized solutions
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