Swiss banking powerhouse UBS, crypto banking specialist Sygnum and PostFinance, a subsidiary company of the state-owned Swiss Post, successfully tested payments between institutions on Ethereum, according to a press release on Tuesday.

The proof of concept, run under the Swiss Bankers Association, saw UBS, PostFinance, and Sygnum Bank carry out transactions using deposit tokens — digital representations of bank deposits that can move on a public blockchain.

The payments were settled legally between banks without relying on the traditional payment system. The transactions were conducted on Ethereum using a permissioned framework.

Switzerland already has an efficient domestic payments network, but traditional systems can’t handle programmable conditions or integrate easily with blockchain

See Full Page