Swiss Banks Complete First Legal Bank Payment on Public Blockchain

The Swiss Banking Alliance, with PostFinance, Sygnum Bank, and UBS, completed its first legally binding bank payment on a public blockchain.

A pilot program explored smart contracts and token-based deposits versus traditional banking systems.
The "Deposit Token" trial involved interbank transfers on the blockchain to ensure compliance with Swiss rules.
Blockchain was also used for escrow transactions to exchange tokens for real assets.
Both trials succeeded, showcasing how regulated financial entities can transact interoperably, creating new payment and settlement methods.

Switzerland's Blockchain Leadership

Switzerland has become a research hub in crypto and blockchain, sharing crypto data with 74 countries to enhance security and transparency.
Despite progress, the Swiss National Bank's plan to include [Bitcoin](https://holder.io/coins/btc/) in reserves stalled due to perceived risks.
The SBA study may inform how blockchain tech can reduce risks in traditional banking.