Swiss banks achieve milestone with deposit token test
The successful deposit token test highlights Switzerland’s drive to lead in digital money innovation and blockchain-based financial services.
PostFinance, Sygnum Bank and UBS, under the Swiss Bankers Association, have successfully tested a deposit token on a public blockchain. For the first time, banks completed a legally binding cross-bank payment with tokenised deposits, a breakthrough for Switzerland’s financial sector.
The proof of concept (PoC) explored how bank deposits can be represented on blockchain to enable faster, programmable and fully automated payments. Smart contracts on the system allow transactions to be triggered only when agreed conditions are met, reducing risk while increasing efficiency.
Use cases tested included payments between customers of different banks and escrow-style settlements for tokenised assets.
Results confirm that deposit tokens are technically and legally feasible across banks when combined with a public blockchain and permissioned applications. Such infrastructure could enable automated insurance settlements, instant securities trading, and machine-to-machine payments.
Industry leaders stressed that while the PoC proves feasibility, scaling will require broader cooperation with other institutions, regulators and infrastructure providers.
Project representatives described the work as a decisive step toward digital money innovation in Switzerland, reinforcing the country’s role as a pioneer in blockchain-based finance.
The Swiss Bankers Association confirmed that the project aligns with its strategic focus on digital currencies, though the results do not yet mean deposit tokens will be formally launched.
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