🌋 UBS Introduces UBS Digital Cash for Blockchain-Based Transactions
posted 7 Nov 2024
UBS, the prominent Swiss bank, has revealed a successful pilot project for UBS Digital Cash, a blockchain-powered multicurrency payment solution aimed at improving cross-border transactions.
This initiative is tailored for corporate and institutional clients, providing improved liquidity management, expedited payment processing, and blockchain's hallmark transaction transparency.
UBS debuts blockchain-based payment solution pilot. Source: ubs.com
UBS, managing assets valued at $5.7 trillion, operates out of its Zurich headquarters across more than 50 global markets. UBS Group AG is listed on both the SIX Swiss Exchange and NYSE.
The bank notes that traditional cross-border payments can result in critical delays in settlement, causing client companies to have a fragmented view of their liquidity.
UBS Digital Cash seeks to mitigate these challenges, enabling better real-time cash position monitoring and streamlined liquidity handling.
UBS leverages blockchain technology to improve transaction transparency and security.
Blockchain-based payment solutions for cross-border payments are a strategic focus for UBS. With the successful UBS Digital Cash pilot, we have reached another important milestonestated Andy Kollegger, Head of UBS Institutional & Multinational Banking.
The pilot project featured transactions within Switzerland and overseas, covering multiple currencies such as the US dollar, Swiss franc, euro, and Chinese yuan.
UBS tested transactions within its proprietary network as it moves toward scaling UBS Digital Cash.
We see the interoperability between UBS Digital Cash and other digital cash initiatives as key for the financial industry. In addition to their role in correspondent banking, they also have the potential to streamline and simplify the settlement of tokenized assets in the capital marketcommented Xiaonan Zou, Head of UBS Digital Assets.
UBS Digital Cash relies on a private blockchain network where transactions are carried out through smart contracts that trigger payments automatically when set conditions are satisfied. The system supports multi-currency operations and works virtually in real-time, 24/7 without interruptions.
This development is part of UBS's broader market endeavors, including its involvement in Project Helvetia with the Swiss National Bank and Project Agorá with the Bank for International Settlements, which focus on promoting central bank digital currency applications.
More breaking news
More breaking news
Breaking news