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UBS has successfully piloted a blockchain-based payment system, achieving seamless transactions with multinational clients and banks. The pilot included both domestic transfers within Switzerland and cross-border payments in US dollars, Swiss francs, Euros, and Chinese yuan, as well as liquidity transfers between various UBS entities.
The initiative aims to enhance visibility into liquidity positions for corporate clients, which can often be hampered by settlement delays. With the UBS Digital Cash system, companies can gain real-time insight into their intraday liquidity, making it easier to manage and adjust liquidity buffers across accounts.
“Blockchain-based payment solutions for cross-border transactions are a strategic priority for UBS. The success of the UBS Digital Cash pilot marks an important milestone,” said Andy Kollegger, Head of UBS Institutional & Multinational Banking.
UBS Digital Cash operates on a private blockchain network accessible exclusively to authorized clients. Transactions are settled via smart contracts, enabling automatic execution once predefined conditions are met. This approach allows UBS to process transactions in nearly real time, across any currency, and around the clock.
Xiaonan Zou, UBS Head of Digital Assets for Group Treasury, noted the broader implications of the initiative: “We see interoperability between UBS Digital Cash and other digital cash systems as crucial for the financial industry. Beyond correspondent banking, this technology has the potential to streamline and simplify the settlement of tokenized assets in capital markets.”
This pilot represents a significant advancement in UBS’s digital transformation journey, positioning the bank at the forefront of blockchain innovation in the financial sector.
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