PostFinance, UBS, Sygnum Execute First Cross-Bank Blockchain Payment With Deposit Tokens

Three Swiss banks—UBS, PostFinance, and Sygnum Bank—have pioneered the first cross-institutional blockchain payment using tokenized bank deposits. This breakthrough offers a viable alternative to stablecoins, enabling transactions across shared blockchain infrastructure. Unlike JPMorgan's existing system, this solution supports interoperability between multiple banking institutions.

The transaction Leveraged deposit tokens, which represent traditional bank deposits converted for blockchain use through tokenization. Clients can now transfer tokens mirroring their actual deposits seamlessly. Thomas Frei of Sygnum Bank underscored the innovation's significance, calling it "something really new" in cross-institutional blockchain payments.

The Swiss Bankers Association confirmed the successful test, demonstrating how participating banks managed counterparty risk on shared infrastructure. This development addresses a critical gap in blockchain payment systems, where previous solutions like JPMorgan's lacked multi-bank functionality.