UBS has tested a blockchain-based payment solution called UBS Digital Cash. The major bank wants to offer this solution to its business customers and thus promises more transparency, efficiency and security for cross-border payments.
UBS has developed a blockchain-based payment solution and tested it in a pilot project. The solution is called UBS Digital Cash and should enable programmability of fund movements for corporate clients and institutional clients active internationally, says the major bank. The objective is to increase the transparency and security of cross-border payments, which would facilitate their processing as quickly as possible
As part of the test, UBS said it carried out transactions with multinational clients and other banks, including transactions in Switzerland as well as cross-border payments in US dollars, Swiss francs, euros and Chinese yuan.
The pilot showed that blockchain-based payment solutions can accelerate cross-border transactions, meet deadlines and ensure seamless traceability, according to Janko Hahn, Head Treasury Operations at Autoneum, who participated in the pilot. .
Based on a private blockchain
The solution is based on a private blockchain network to which only authorized clients have access. Payment processing is done through smart contracts which, for example, automatically execute payments as soon as predefined conditions are met. Transfers are entered and processed in a digital transaction recording system – regardless of currency, almost in real time and around the clock, the press release continues.
“UBS Digital Cash aims to enable our clients to be much more efficient and transparent in cross-border payments. Blockchain-based payment solutions for cross-border payments are a strategic priority for UBS. With the success of the UBS Digital Cash pilot project, we have reached another important milestone,” explains Andy Kollegger, Head UBS Institutional & Multinational Banking.
UBS wants the development of the payment solution to be seen as a complement to other blockchain initiatives, for example the Swiss National Bank’s Helvetia project, which aims to provide a central bank digital currency reserved for institutions financial services (wholesale MNBC).
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