Swiss bank UBS tests blockchain for cross-border payments with digital cash

UBS has efficiently examined its blockchain-based fee system to enhance the effectivity of cross-border transactions.

Multinational funding big UBS has accomplished a pilot of its blockchain-based fee system known as ‘UBS Digital Money’, aimed toward bettering the effectivity of cross-border transactions.

In a Nov. 7 press launch, the Zurich-headquartered financial institution mentioned the trial, involving multinational purchasers and banks, included home funds inside Switzerland in addition to cross-border transactions in U.S. {dollars}, Swiss francs, euros and Chinese language yuan.

The system makes use of a non-public blockchain community known as ‘UBD Digital Money’, which is simply accessible to approved clients, with transactions settled by way of good contracts which can be mechanically executed as soon as pre-defined circumstances are met.

“Blockchain-based fee options for cross-border funds are a strategic focus for UBS.”

Andy Kollegger, Head of UBS Institutional & Multinational Banking

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Commenting on the milestone, UBS Head of Digital Belongings Xiaonan Zou mentioned the financial institution sees the interoperability between UBS Digital Money and different digital money initiatives as “key for the monetary sector”. The most recent initiative enhances UBS’s involvement in a variety of market initiatives, the financial institution says, citing the Swiss Nationwide Financial institution-led undertaking Helvetia for actual wholesale Swiss franc Central Financial institution Digital Foreign money, in addition to the Agorá undertaking, led by the Financial institution for Worldwide Settlements.

The pilot comes shortly after UBS launched its first tokenized funding fund on Ethereum, the UBS USD Cash Market Funding Fund Token, aimed toward approved distribution companions in Singapore.

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