Swiss Banks Test Blockchain-Based Deposit Tokens in Landmark Feasibility Study

UBS, PostFinance, and Sygnum Bank have successfully completed a proof-of-concept for blockchain-based "deposit tokens" under the Swiss Bankers Association's oversight. The trial marks Switzerland's first legally binding interbank payment using public blockchain infrastructure while maintaining traditional bank deposits as the settlement layer.

The initiative addresses limitations in Switzerland's otherwise efficient payment systems—lack of programmability, restricted 24/7 availability for large transfers, and limited blockchain interoperability. By tokenizing book money (BGT) backed by SNB deposits or money market instruments, the consortium demonstrates how legacy finance can bridge to decentralized ecosystems without compromising regulatory compliance.

This standardized framework could accelerate institutional adoption of blockchain rails, particularly for wholesale transactions requiring auditability and instant settlement. The technical-legal blueprint emerges as central banks globally explore tokenized deposit models alongside CBDCs.