Swiss banks UBS, PostFinance, and Sygnum Bank have completed the first legally binding interbank payment using tokenized deposits on a public blockchain.
Summary
- The transaction used tokenized deposits to transfer funds across participating banks, with settlement completed on-chain.
- The milestone builds on previous blockchain efforts, such as JPMorgan’s June 2025 JPMD proof of concept, but goes further by enabling cross-bank interoperability.
UBS, PostFinance, Sygnum Bank complete historic interbank payment using blockchain
Swiss banks UBS, Sygnum Bank, and PostFinance have carried out the first legally binding payment between institutions using a public blockchain, the Swiss Bankers Association reported on Tuesday. The payment was executed as part of a feasibility study, using tokenized deposits, which are bank deposits made usable on the blockchain. Clients transferred these deposit tokens, representing real bank deposits, across participating banks, with settlement completed on the blockchain.
According to Thomas Frei, head of product innovation at Sygnum Bank, the experiment effectively creates “a new form of payments on the blockchain, which is an alternative to stablecoins.”
However, he noted that further work is needed before the system can be fully rolled out, including additional testing and refinement of the infrastructure to ensure scalability and regulatory compliance.
This development builds upon previous efforts in the financial industry to integrate blockchain technology into banking systems. Notably, in June, JPMorgan launched a proof of concept for JPMD, a USD deposit token, on Coinbase’s Base blockchain.
However, while JPMorgan’s initiative enabled institutional clients to move money quickly and securely on-chain, the Swiss banks’ transaction goes a step further by allowing cross-bank use of deposit tokens, demonstrating broader interoperability.
“Our tokenized deposits can be used across different banks, which is something that was not there yet,” said Frei.