According to the Financial APP, UBS Group (UBS.US) stated on Thursday that it has successfully piloted a blockchain-based payment system called UBS Digital Cash, aiming to improve the efficiency of cross-border transactions.

In a statement, UBS mentioned conducting transactions with multinational clients and banks during the pilot, including domestic transactions in Switzerland and cross-border payments in USD, Swiss Francs, Euros, and Renminbi.

Andy Kollegger, Head of Cross-Border Banking Business at UBS Group, described the blockchain-based cross-border payment solution as a strategic focus for UBS. Kollegger stated, 'The future goal of UBS Digital Cash is to enable our customers to conduct cross-border payments in a more efficient and transparent manner.'

The pilot program involves transferring liquidity between various entities within UBS. UBS mentioned plans to further expand and develop UBS Digital Cash.

UBS stated that due to increased visibility of cash positions, the system should make it easier for businesses to manage intraday liquidity and adjust liquidity buffers on accounts.

According to the bank, UBS Digital Cash uses a private blockchain network, accessible only to authorized clients. Settlements are done through smart contracts, which can automatically execute payments once certain conditions are met.