Swiss banks pilot first blockchain-based interbank settlement
UBS, Sygnum and PostFinance executed a pilot using deposit tokens to settle interbank payments on a public blockchain
Michael Derrer Fuchs/Shutterstock and Adobe modified by Blockworks
PostFinance, Sygnum Bank and UBS executed what they and the Swiss Bankers Association (SBA) describe as the first legally binding interbank payment using bank deposits on a public blockchain.
The feasibility study, coordinated by the SBA, tested a “deposit token” — a blockchain-based representation of a payment instruction — for cross-bank payments and delivery-versus-payment–style settlement of tokenized assets.
Settlement finality occurred in Swiss Interbank Clearing (SIC), while on-chain smart contracts coordinated the process on a public chain with permissioned access, according to the official results report.
Legally, the token is not a new form of money. Rather, it standardizes a Swiss-law payment instruction that debits one bank account and credits another off-chain; on-chain transfers never move claims but do trigger SIC-backed settlement.
The results document describes how a single shared Ethereum smart contract with role-based controls enabled multi-bank fungibility, and compliance checks for AML/CTF and sanctions were integrated. Two use cases passed: a customer-to-customer payment across institutions and an escrow-like exchange of deposit tokens for tokenized assets with automatic execution.
The report flags limits, including reliance on off-chain core banking, manual integrations and non-native design. It also maps next steps, such as exploring “native” on-chain master records, potential linkage to wholesale CBDC or an automated RTGS trigger, and broader bank and authority participation to scale.
UBS said the proof shows that interoperability of bank money via public blockchains “can become a reality,” aligning with Switzerland’s multi-year push into tokenization.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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