In a transfer that would reshape how conventional finance interacts with public blockchains, three main Swiss banks have accomplished the nation’s first cross-bank cost utilizing Ethereum.
The Swiss banks, UBS, PostFinance, and Sygnum Financial institution teamed up for the pilot. This marks a big milestone within the exploration of tokenized deposits. On the coronary heart of the experiment have been deposit tokens. These are common financial institution deposits transformed into blockchain-based tokens.
In response to Reuters, UBS, PostFinance, and Sygnum Financial institution have accomplished the primary binding cost utilizing tokenized financial institution deposits on a public blockchain, as a part of a joint feasibility examine. The examine demonstrated that such tokens might be transferred and settled throughout banks through…
— Wu Blockchain (@WuBlockchain) September 16, 2025
These digital representations allowed clients to ship and settle funds immediately throughout completely different banks. That is one thing trade gamers have been keen to check for years.
“That is genuinely new territory,” defined Thomas Frei, Head of Product Innovation at Sygnum. “For the primary time, our tokenized deposits might be transferred seamlessly throughout a number of banks. That wasn’t doable earlier than.”
Why This Issues: An Various to Stablecoins
Stablecoins have lengthy dominated crypto funds, pegged to fiat currencies just like the U.S. greenback. However this Swiss initiative introduces a contemporary various; regulated, bank-issued tokens backed by actual deposits.
In contrast to JPMorgan’s deposit tokens, that are restricted to its inside community, the Swiss mannequin permits cross-bank usability, decreasing counterparty threat and broadening potential purposes.
Featured in @finews_ch by Peter Kuster: “A feasibility examine by the trio of Postfinance, Sygnum Financial institution and UBS beneath the path of the Swiss Bankers Affiliation reveals that blockchain know-how for deposit tokens works inside the current authorized framework.”
Peter Kuster writes:… pic.twitter.com/xAhG1hv4B1
— Sygnum Financial institution (@sygnumofficial) September 17, 2025
“This feels just like the launch of a brand new cost mannequin on the blockchain,” Frei added. “It really works very like stablecoins however with direct backing from banks.”
What Comes Subsequent
The Swiss Bankers Affiliation (SBA) believes such tokens might pave the way in which for fast, remaining settlement of funds on shared infrastructure. Much more, they may combine into automated enterprise processes, unlocking new efficiencies for international finance.
Nonetheless, this isn’t prepared for mass rollout simply but. Frei famous that additional work is required earlier than the know-how can transfer past the pilot section. However the feasibility examine sends a robust sign: blockchain-based funds are inching nearer to changing into mainstream on the earth of regulated banking.
Disclaimer
The knowledge mentioned by Altcoin Buzz isn’t monetary recommendation. That is for academic, leisure and informational functions solely. Any info or methods are ideas and opinions related to accepted ranges of threat tolerance of the author/reviewers, and their threat tolerance could also be completely different from yours.
We aren’t chargeable for any losses that you could be incur because of any investments straight or not directly associated to the knowledge supplied. Bitcoin and different cryptocurrencies are high-risk investments, so please do your due diligence.
Copyright Altcoin Buzz Pte Ltd.
The publish Swiss Banks Full First Cross-Financial institution Ethereum Funds appeared first on Altcoin Buzz.
