UBS, PostFinance and Sygnum Conduct Cross-Bank Payments on Ethereum

Core Insights - UBS, Sygnum, and PostFinance successfully tested interbank payments on Ethereum using deposit tokens, marking a significant step in digital banking innovation [1][2] - The trial demonstrated the potential for instant transfers and automated conditions through smart contracts, enhancing the efficiency of transactions [2][3] - While the pilot confirmed the technical and legal feasibility of the system, broader participation from banks and regulators is necessary for scaling [4] Group 1: Project Overview - The proof of concept was conducted under the Swiss Bankers Association, involving UBS, PostFinance, and Sygnum Bank [1] - Payments were settled legally without traditional payment systems, utilizing a permissioned framework on Ethereum [2] Group 2: Use Cases and Benefits - The trial tested peer-to-peer payments between customers of different banks and an escrow-like setup for swapping deposit tokens with tokenized assets [3] - The use of deposit tokens could allow for instant processing of transfers and integration with programmable conditions, such as automatic settlements for securities trades or insurance payouts [2][3] Group 3: Future Considerations - The Swiss Bankers Association highlighted that while the pilot is a strategic priority for digital currencies, it does not imply immediate introduction of deposit tokens [4] - Scaling the system will require collaboration among banks, infrastructure providers, and regulators to ensure widespread adoption [4]