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Zurich, 7 November 2024 – Cross-border payments often lead to delayed settlements. As a result, this creates a fragmented view of liquidity positions for companies. The aim is to increase transparency and security with blockchain-based payments via �۶���Ƶ Digital Cash which should in turn facilitate timely payment processing. In addition, companies should be able to manage intraday-liquidity and adjust liquidity buffers on their accounts more easily in the future, thanks to greater visibility of their total cash positions.

Andy Kollegger, Head �۶���Ƶ Institutional & Multinational Banking, says: ”�۶���Ƶ Digital Cash going forward aims to enable our clients to make cross-border payments in a much more efficient and transparent way.” emphasizing: "Blockchain-based payment solutions for cross-border payments are a strategic focus for �۶���Ƶ. With the successful �۶���Ƶ Digital Cash pilot, we have reached another important milestone.”

In the pilot, transactions with multinational clients and banks were successfully carried out, including domestic transactions within Switzerland and cross-border payments in US dollars, Swiss francs, Euros and Chinese yuan. In addition to that, the pilot also included the transfer of liquidity between various �۶���Ƶ companies. �۶���Ƶ plans to expand and develop its �۶���Ƶ Digital Cash offering in further steps.

Pilot participant Janko Hahn, Head Treasury Operations at Autoneum, says: “The �۶���Ƶ Digital Cash pilot showcased the key advantages of blockchain-based payment solutions. They make cross border transactions faster, on time and provide a seamless traceability, which is a huge benefit when operating in a global market.”

Xiaonan Zou, �۶���Ƶ Head Digital Assets, Group Treasury, adds: ”We see the interoperability between �۶���Ƶ Digital Cash and other digital cash initiatives as key for the financial industry. In addition to their role in correspondent banking, they also have the potential to streamline and simplify the settlement of tokenized assets in the capital market.”

How does �۶���Ƶ Digital Cash work?

For the payment process, �۶���Ƶ Digital Cash uses a private blockchain network to which only the permissioned clients have access. The settlement is performed via smart contracts, which, for example, automatically execute payments as soon as predefined conditions are met. Client transfers at �۶���Ƶ are recorded and processed in a digital system for recording transactions – independent of currency, practically in real time and around the clock. �۶���Ƶ Digital Cash complements �۶���Ƶ's involvement in a wide range of market initiatives, such as the Swiss National Bank-led project Helvetia for real wholesale Swiss franc Central Bank Digital Currency (wCBDC), as well as the Agorá project, led by the Bank for International Settlements (BIS) together with seven central banks, to unlock central bank money and tokenized deposits from commercial banks in the cross-border payment context.

About �۶���Ƶ
�۶���Ƶ is a leading global asset manager and the leading universal bank in Switzerland. In addition, the company offers diversified wealth management solutions and focused investment banking functions. With the acquisition of Credit Suisse, �۶���Ƶ has assets under management of $5.7 trillion as of the fourth quarter of 2023. �۶���Ƶ supports its clients in achieving their financial goals through personalized advice, solutions and products. Headquartered in Zurich, Switzerland, the company operates in more than 50 markets around the globe. �۶���Ƶ Group AG shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).

�۶���Ƶ Switzerland AG