UBS and Deutsche Bank announced that as part of the ECB's wholesale DLT settlement trial, the two parties simulated tokenized deposit payments between banks. The Trigger solution of the German central bank (Bundesbank) enables blockchain-based systems to link to the Trigger Chain, thereby initiating payments on the Target2 payment system in central bank currency. In terms of tokenized deposits, tokens are destroyed on the sending blockchain and minted at the receiving bank.
Fnality's technology partner Adhara provides the orchestration layer to ensure that all individual settlement parts of the transaction are carried out atomically.
Two trials were conducted this time, one involving time-sensitive euro payments. The second simulated pound and Swiss franc transactions between Deutsche Bank's London branch and UBS Group Switzerland, which were settled in euros.
Earlier news, UBS said it had successfully piloted a blockchain-based payment system called UBS Digital Cash, which aims to improve the efficiency of cross-border transactions. UBS said in a statement that transactions with multinational customers and banks were conducted in the pilot, including domestic transactions in Switzerland and cross-border payments in US dollars, Swiss francs, euros and RMB. UBS plans to further expand and develop UBS Digital Cash, a system that reportedly uses a private blockchain network that can only be accessed by permissioned clients.
Catherine
