In a groundbreaking development for the banking sector, Swiss banks UBS, PostFinance, and Sygnum have successfully completed the first legally binding interbank payment using a public blockchain. This achievement, confirmed by the Swiss Bankers Association (SBA), marks a significant step forward in integrating blockchain technology with traditional banking systems.
The trial, conducted as part of a feasibility study, demonstrated how payments could be processed in real-time and with finality on a shared blockchain infrastructure. By utilizing deposit tokens – digital representations of bank deposits – the banks were able to execute payments on the Ethereum blockchain, ensuring both compliance with regulatory requirements and enhancing efficiency. This use of blockchain for smart contract execution represents a major leap towards automating and streamlining financial processes.
This successful pilot underscores the potential for blockchain to transform financial transactions, offering greater speed, security, and transparency. It also positions Switzerland at the forefront of the digital finance revolution, paving the way for future adoption of blockchain technology in the banking sector. If adopted more widely, it could reshape how interbank payments are conducted, reducing reliance on traditional infrastructure and driving innovation in financial services.
