UBS has successfully piloted its blockchain-based payment system to improve the effectiveness of international transactions.
In an effort to increase the effectiveness of cross-border transactions, multinational financial firm UBS has finished a trial of its blockchain-based payment system, known as “UBS Digital Cash.”
The Zurich-based bank said in a news release on Nov. 7 that the trial, which encompassed international banks and clients, involved cross-border transactions in Chinese yuan, euros, Swiss francs, and U.S. dollars in addition to domestic payments made within Switzerland.
The technology uses a private blockchain network known as “UBD Digital Cash,” which is only available to clients with authorization.
Smart contracts are used to settle transactions and start running automatically when certain criteria are met. Andy Kollegger, head of UBS Institutional & Multinational Banking:
Blockchain-based payment solutions for cross-border payments are a strategic focus for UBS.”
Interoperability between UBS Digital Cash and other digital cash projects is “key for the financial industry,” according to UBS head of digital assets Xiaonan Zou, who commented on the milestone.
According to the bank, the most recent initiative enhances UBS’s participation in a variety of market initiatives.
This includes the Agorá project, headed by the Bank for International Settlements, and the Helvetia project, led by the Swiss National Bank, which involves real wholesale Swiss franc Central Bank Digital Currency.
The test was conducted soon after UBS introduced the UBS USD Money Market Investment Fund Token, its first tokenized investment fund on Ethereum, aimed at Singaporean authorized distribution partners.
