Swiss bank UBS said on Thursday it had successfully piloted a blockchain-based payment system it developed to improve the efficiency of cross-border transactions, known as UBS Digital Cash.
As part of the pilot project, transactions were carried out with clients and multinational banks, including domestic transactions in Switzerland and cross-border payments in US dollars, Swiss francs, euros and Chinese yuan, UBS said in a press release.
Andy Kollegger, Head of UBS Institutional & Multinational Banking, described blockchain-based payment solutions for cross-border payments as a strategic focus for UBS.
“UBS Digital Cash aims to enable our clients to make cross-border payments in a much more efficient and transparent manner,” said Mr Kollegger.
The pilot project included the transfer of cash between various UBS companies. UBS said it plans to expand and develop UBS Digital Cash subsequently.
The system is expected to make it easier for companies to manage intraday liquidity and adjust cash reserves in their accounts through better visibility of their cash positions, UBS said.
According to the bank, UBS Digital Cash uses a private blockchain network that only authorized customers have access to. Settlement is done through smart contracts that can automatically execute payments once certain conditions are met.
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