Swiss Banks Pilot Tokenized Deposits on Public Blockchain

Swiss banks UBS, PostFinance and Sygnum Bank have successfully piloted tokenized deposits on a public blockchain, marking the first legally binding interbank payment with digital deposit tokens. The feasibility study demonstrated two key use cases: secure, compliant transfers of tokenized deposits for interbank payments and an escrow mechanism for real-world asset settlement. Under Swiss law, these deposit tokens are recognized as binding payment instructions, ensuring full legal compliance. Despite this success, technical challenges remain. Current public blockchains lack the scalability and throughput needed for high-volume transactions, and interoperability between different banking platforms requires improvement. Swiss regulators have proactively addressed governance, implementing access controls and smart contract oversight to support wider adoption. This milestone confirms the viability of tokenized deposits on a public blockchain and paves the way for more efficient, transparent interbank settlement rails. As regulated banks explore digital banking innovations, further development could set new global standards for public blockchain payment systems.