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Digital Cash: UBS Pilots Blockchain-Based Multi-Currency Payment Solution

Cross-border payments often lead to delayed settlements.  As a result, this creates a fragmented view of liquidity positions for companies.

The aim is to increase transparency and security with blockchain-based payments via UBS Digital Cash which should in turn facilitate timely payment processing.

In addition, companies should be able to manage intraday-liquidity and adjust liquidity buffers on their accounts more easily in the future, thanks to greater visibility of their total cash positions.

Digital Cash: UBS Pilots Blockchain-Based Multi-Currency Payment Solution
Andy Kollegger

Andy Kollegger, Head UBS Institutional & Multinational Banking, says:

”UBS Digital Cash going forward aims to enable our clients to make cross-border payments in a much more efficient and transparent way.”

emphasizing:

“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 milestone.”

In the pilot, transactions with multinational clients and banks were successfully carried out, including domestic transactions within Switzerland and cross-border payments in US dollars, Swiss francs, Euros and Chinese yuan. In addition to that, the pilot also included the transfer of liquidity between various UBS companies. UBS plans to expand and develop its UBS Digital Cash offering in further steps.

How does UBS Digital Cash work?

For the payment process, UBS Digital Cash uses a private blockchain network to which only the permissioned clients have access. The settlement is performed via smart contracts, which, for example, automatically execute payments as soon as predefined conditions are met. Client transfers at UBS are recorded and processed in a digital system for recording transactions – independent of currency, practically in real time and around the clock.

UBS Digital Cash complements UBS’s involvement in a wide range of market initiatives, such as the Swiss National Bank-led project Helvetia for real wholesale Swiss franc Central Bank Digital Currency (wCBDC), as well as the Agorá project, led by the Bank for International Settlements (BIS) together with seven central banks, to unlock central bank money and tokenized deposits from commercial banks in the cross-border payment context.

 

Featured image credit: edited from freepik

The post Digital Cash: UBS Pilots Blockchain-Based Multi-Currency Payment Solution appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

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Fintech News Switzerland provides a source of timely, deep insights and the latest local and global news about Fintech. Launched in 2014, the Fintech News Network team works very hard to deliver fintech-centric content in various forms to an audience looking for updates on fintech events and webinars, stunning opinions from highly-reputable digital finance innovators, analysis on fintech applications from active insiders, breaking news on fintech topics and fintech market alerts.
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