UBS, PostFinance, Sygnum Test Ethereum-Based Cross-Bank Payments

Swiss banks UBS, Sygnum, and PostFinance completed a successful test of interbank payments on the Ethereum network.
The test involved deposit tokens, which are digital representations of bank deposits, used for transactions on a public blockchain.
Payments were legally settled between banks without using traditional systems, utilizing Ethereum's permissioned framework.
Deposit tokens could allow instant transfers and enable automated conditions through smart contracts in future applications.
The trial explored two use cases: peer-to-peer payments between customers of different banks and an escrow-like exchange of deposit tokens for tokenized assets.
Technical and legal feasibility was confirmed, but broader participation from banks, infrastructure providers, and regulators is needed for scaling.
The Swiss Bankers Association emphasized that this pilot aligns with its strategic focus on digital currencies, but deposit tokens are not set for immediate release.