UBS, a multinational investment giant, has recently completed a successful pilot of its blockchain-based payment system known as “UBS Digital Cash.” This system was created with the goal of improving the efficiency of cross-border transactions for their clients. The pilot, which took place with multinational clients and banks, involved both domestic payments within Switzerland and cross-border transactions in various currencies such as U.S. dollars, Swiss francs, euros, and Chinese yuan.
The blockchain network used by UBS for this system is called “UBS Digital Cash” and is a private network that is accessible only to permissioned clients. Transactions on this network are settled through smart contracts, which automatically execute once specific conditions are met. Andy Kollegger, the head of UBS Institutional & Multinational Banking, emphasized the importance of blockchain-based payment solutions for cross-border payments as a strategic focus for UBS.
Xiaonan Zou, the head of digital assets at UBS, highlighted the significance of interoperability between UBS Digital Cash and other digital cash initiatives in the financial industry. This latest initiative by UBS complements their involvement in various market initiatives, including the Helvetia project led by the Swiss National Bank for wholesale Swiss franc Central Bank Digital Currency, as well as the Agorá project led by the Bank for International Settlements.
In addition to their blockchain-based payment system, UBS recently launched its first tokenized investment fund on Ethereum called the UBS USD Money Market Investment Fund Token. This token is aimed at authorized distribution partners in Singapore, further showcasing UBS’s commitment to innovation in the financial sector.
The successful pilot of UBS Digital Cash demonstrates the potential for blockchain technology to revolutionize cross-border payments and improve efficiency in the financial industry. With UBS’s continued focus on digital innovation and initiatives like tokenized investment funds, they are positioning themselves as a leader in adopting new technologies for the benefit of their clients and the industry as a whole.