Last week UBS said it was piloting UBS Digital Cash, a blockchain-based solution for multi-currency payments that allows clients to move money between UBS branches around the world instantly. That works for intrabank payments, but what if the recipient is at a different bank? Today UBS and Deutsche Bank announced they simulated tokenized deposit payments between the banks as part of the European Central Bank’s wholesale DLT settlement trials.
With interbank payments, if you make a tokenized deposit payment to me, it might appear in my bank account instantly, but behind the scenes, the banks have to settle up. In this case that happened using the German Bundesbank’s Trigger solutions that enables blockchain based systems to link to the Trigger Chain, which in turn initiates a payment on the Target2 payment system in central bank money. In terms of the tokenized deposit aspect, the tokens are burnt on the sending blockchain and minted at the recipient bank.
Adhara, the technology partner of Fnality, provided the orchestration layer that ensures that all the separate settlement legs of the transaction happen atomically.
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