New Delhi, September 17, 2025 – Switzerland has taken a pioneering step in digital finance. UBS, PostFinance, and Sygnum Bank have completed the first-ever blockchain payment using real bank deposits, the Swiss Bankers Association confirmed on Tuesday. This pilot formed part of a wider feasibility study focused on using deposit tokens for blockchain transactions.
The study explored whether banks could issue tokens that represent actual deposits. The banks then used these tokens to carry out secure payments on a blockchain network. The trial showed that regulated banks can transfer real money between each other using a decentralized system.
Thomas Frei, Head of Product Innovation at Sygnum Bank, described the initiative as “something really new.” He said the system enabled transfers between banks, which previous blockchain solutions had not allowed. Until now, such systems have mainly operated within single institutions for internal use.
Frei highlighted the differences between this model and JPMorgan’s. Although JPMorgan has launched its own deposit token, it operates only within its network. The Swiss solution, however, allowed transfers between completely separate banks. This level of interoperability marked a key achievement in the project.
He also said the test proved that banks can manage counterparty risks effectively. Despite using a decentralized network, all participating institutions maintained control over security and compliance. This result showed that the system offers both safety and scalability.
“Basically, we launched a new form of payment on the blockchain,” Frei stated. He added that deposit tokens could serve as a stablecoin alternative. While stablecoins often tie themselves to traditional assets, unregulated entities usually issue them.
Unlike stablecoins, licensed banks issue deposit tokens directly and fully back them with real money. This backing gives them added credibility and trust. As a result, they may offer a more secure option for businesses and financial institutions looking to adopt blockchain payments.
The Swiss Bankers Association said the test proved that blockchain can support mainstream financial services. The pilot banks completed transactions quickly, with traceability and cost efficiency. This progress could eventually lead to improved performance across payment systems.
Future use cases may include instant salary payments, cross-border transfers, and automated billing systems. These innovations could save time and lower transaction costs for companies and banks alike. However, the involved banks noted that they still need to carry out more development.
Officials stressed that the technology remains in its early stages. The banks now aim to refine the system further and meet regulatory standards. Only then will they make it available to customers.
The trial also demonstrated the potential for joint innovation in the financial sector. UBS, PostFinance, and Sygnum Bank collaborated closely on the project. Together, they built a shared digital infrastructure, showing that cooperation among banks can drive meaningful progress.
Frei confirmed that the system has not reached public availability yet. He said the banks plan to build a platform that is secure, efficient, and easy to use. Customers will gain access only once the banks meet those standards.
This successful pilot represents more than just a technological milestone. It proves that blockchain now supports regulated, real-money transactions outside the world of cryptocurrencies. The approach may eventually replace aging payment systems with something faster and more reliable.
Legacy banking systems often cause delays and increase costs. Blockchain removes many of those barriers. If banks adopt it widely, they could modernize how institutions process payments across the globe.
The Swiss Bankers Association praised the pilot and called it a major step in financial innovation. It said Switzerland continues to lead in developing secure, regulated blockchain solutions. The success also reflects the country’s commitment to staying ahead in financial technology.
As the project progresses, the developers may invite more banks to join the network. A broader adoption of deposit tokens could help standardize digital payments across the industry. This shift would benefit customers, businesses, and regulators alike.
For now, UBS, PostFinance, and Sygnum Bank have set a new benchmark. Their blockchain payment using real bank deposits could reshape the future of global finance. The financial world is now watching how this breakthrough will unfold.
