UBS (UBS, Financial) announced the successful pilot of its blockchain-based payment system, known as UBS Digital Cash. This system is designed to enhance the efficiency of cross-border transactions.
The pilot included transactions with multinational clients and banks, covering domestic transactions in Switzerland and cross-border payments in US dollars, Swiss francs, euros, and Chinese yuan.
Andy Kollegger, UBS's head of institutional and multinational banking, emphasized that blockchain-based cross-border payment solutions are a strategic priority for UBS. The aim of UBS Digital Cash is to enable clients to make cross-border payments more efficiently and transparently.
The pilot program involved the transfer of liquidity among UBS companies, with plans to expand and further develop UBS Digital Cash.
The system is expected to improve the visibility of cash positions, making it easier for businesses to manage intraday liquidity and adjust liquidity buffers in their accounts.
UBS Digital Cash utilizes a private blockchain network accessible only to approved clients. Settlement is executed through smart contracts, which automate payments once certain conditions are met.
