Swiss Bankinghouse UBS, specialist in cryptographic banking Sygnum and Postfinance, a subsidiary company of the Swiss state -owned Swiss position, successfully tested payments between institutions in Ethereum, according to a press release on Tuesday.
The proof of concept, executed under the Association of Swiss bankers, SAW UBS, Postfinance and Sygnum Bank carry out transactions using deposit tokens: digital representations of bank deposits that can move in a public block chain.
Payments were legally resolved among banks without depending on the traditional payment system. Transactions were made in Ethereum using a frame permission.
Switzerland already has an efficient network of national payments, but traditional systems cannot handle programmable conditions or integrate with blockchain -based markets, companies said. With deposit tokens, transfers could be processed in the future instantly and linked to automated conditions through intelligent contracts.
For example, a stock trade could resolve as soon as the property is transferred, or an insurance payment could be activated once a claim is validated.
The trial tested two cases of use: pairs between clients of different banks and a custody configuration where deposit tokens were exchanged for tokenized assets.
Although the project confirmed the technical and legal viability, the system scale will require a broader participation of banks, infrastructure suppliers and regulators. The Swiss banker association said that the work falls under its strategic priority in digital currencies, but the pilot does not mean that deposit tokens will be introduced immediately.
