Swiss Banks Complete First Blockchain-Based Bank Payment

Swiss banks have achieved a landmark in financial technology by executing the first-ever bank payment on a public blockchain with full regulatory approval. The trial, spearheaded by the Swiss Bankers Association (SBA), involved major institutions such as UBS, PostFinance, and Sygnum Bank. This breakthrough validates the use of deposit tokens—digital representations of bank money—to facilitate seamless, legally compliant transactions.

The proof-of-concept demonstrated how blockchain can bridge traditional banking and decentralized finance. Smart contracts ensured secure, automated settlements while maintaining regulatory adherence. Notably, the system triggered off-chain fiat transfers upon on-chain tokenized instructions, enabling payments between customers of participating banks and tokenized asset exchanges.

Christoph Puhr of the SBA emphasized that public blockchains, when properly managed, can meet stringent legal standards. This development signals growing institutional confidence in blockchain's capacity to revolutionize cross-border payments and asset tokenization.