Swiss Banks Successfully Conduct First Cross-Bank Ethereum Payments Using Tokenized Deposits

Three major Swiss banks, UBS, PostFinance, and Sygnum Bank, have completed the country's first cross-bank payment using Ethereum, marking a significant milestone in tokenized deposits. The experiment involved deposit tokens, regular bank deposits converted into blockchain-based tokens, allowing customers to send and settle payments instantly across different banks. This could reshape how traditional finance interacts with public blockchains and introduce a fresh alternative to stablecoins.

Three major Swiss banks, UBS, PostFinance, and Sygnum Bank, have completed the country's first cross-bank payment using Ethereum, marking a significant milestone in tokenized deposits. The experiment involved deposit tokens, regular bank deposits converted into blockchain-based tokens, allowing customers to send and settle payments instantly across different banks. This could reshape how traditional finance interacts with public blockchains and introduce a fresh alternative to stablecoins.

The transaction, executed as part of a larger initiative by Swiss banks, utilized tokenized deposits to transfer funds across participating institutions. The settlement was completed on-chain, demonstrating the potential for increased efficiency and transparency in financial transactions. This milestone builds on previous blockchain efforts, such as JPMorgan’s June 2025 JPMD proof of concept, but goes further by enabling cross-bank interoperability.

The Swiss Bankers Association reported that the payment was executed as part of a broader effort to test the feasibility of blockchain-based interbank settlements. The pilot highlighted the potential for cost, transparency, and settlement-speed improvements for traditional banking infrastructure. The project used controlled environments to test settlement finality, custody arrangements, and anti-money laundering checks with bank-grade controls in place.

The pilot demonstrated that tokenized deposits can achieve settlement finality when combined with robust reconciliation and custody procedures. Regulators are expected to collaborate on standards for tokenized bank liabilities, custody, and reporting. Industry observers note that this could prompt broader discussions on central bank interactions and operational risk management.

The Swiss banks’ Ethereum pilot marks a pivotal step toward integrating blockchain into traditional settlement systems. By proving that deposit tokens can be used for compliant interbank transfers, the initiative advances conversations on broader adoption, regulatory standards, and next-phase scaling. Watch for expanded trials and formal guidance as the ecosystem evolves.