UBS has successfully completed a pilot of its blockchain-based payment system, UBS Digital Cash, aimed at enhancing the speed and efficiency of cross-border transactions for corporate and institutional clients. The pilot processed transactions with multinational clients and banks, including domestic transfers within Switzerland and cross-border payments in US dollars, Swiss francs, Euros, and Chinese yuan.
The initiative improves liquidity management by offering real-time visibility of corporate clients’ total cash positions, addressing the challenges caused by settlement delays. Using a private blockchain network and smart contracts, the system enables 24/7, near-instant transfers that execute payments automatically when predefined conditions are met.
Andy Kollegger, UBS’s head of Institutional & Multinational Banking, highlights the strategic importance of blockchain for cross-border payments, marking the pilot as a critical milestone. The bank envisions the system will streamline payment operations and eventually integrate with other digital cash solutions in the financial industry.