TLDR
- Swiss banks pioneer first legal blockchain payment with deposit tokens
- UBS, Sygnum & PostFinance complete landmark blockchain payment trial
- Swiss banks test tokenized deposits for legal interbank blockchain transfer
- Blockchain powers first compliant interbank payment in Swiss banking trial
- Deposit tokens enable first regulated public blockchain bank transaction
A group of major Swiss banks has completed the first legally binding interbank payment using a public blockchain. The initiative involved UBS, Sygnum Bank, and PostFinance and was coordinated by the Swiss Bankers Association. The trial confirmed blockchain’s capacity for secure, regulated, and verifiable financial transactions across institutions.
Deposit Tokens Used in Interbank Blockchain Trial
The banks executed the transaction using blockchain-based “deposit tokens” representing fiat currency instructions on the public blockchain. This marked the first time a legally binding payment used tokenized bank money across a shared public infrastructure. The tokens enabled off-chain fiat transfers while maintaining on-chain verifiability and automation.
The trial also tested an escrow-style use case in which deposit tokens were exchanged for tokenized real-world assets. These smart contract-driven transactions were processed automatically and securely under regulatory oversight, demonstrating the blockchain’s utility in asset tokenization alongside interbank payments.
All transactions followed compliance requirements, proving that smart contracts can operate within legal frameworks. The system provided full transparency and technical auditability. These capabilities suggest new standards for regulated blockchain payments.
Interoperability Between Traditional and Blockchain Systems
The proof-of-concept showed how public blockchains can support interoperability with existing banking systems. Banks used smart contracts to link conventional deposits with digital payment instructions. This bridging mechanism allows real-time, programmable transfers without compromising legal enforceability.
UBS highlighted that public blockchain compatibility with bank money could reshape how institutions manage digital assets. PostFinance and Sygnum supported this view, emphasizing increased cooperation among banks and regulators. These connections open the door to broader tokenization strategies across the financial industry.
The integration demonstrated readiness for scalable solutions in complex financial networks. However, participants noted that additional system design changes would be needed for larger ecosystems. Collaboration between banks and infrastructure partners will be essential to address these scale-related challenges.
SBA Sees Path Forward for Regulated Blockchain Payments
The Swiss Bankers Association coordinated the initiative to advance regulated blockchain innovation. The SBA includes over 260 institutions and supports the modernization of banking infrastructure. The association positioned the trial as a landmark step toward institutional adoption of digital payment rails.
SBA confirmed that blockchain can facilitate legally binding, instant settlement between banks under appropriate permissioned controls. They also stressed the need to develop infrastructure for wider adoption further. The study signals strong momentum in blockchain integration.
This progress sets the stage for further pilots and commercial adoption in regulated environments. Swiss banks now lead in demonstrating compliant blockchain use for institutional payments. Other jurisdictions may look to Switzerland as a model for legal, blockchain-based financial systems.
