Swiss Banks Introduce Blockchain Platform That Transforms Efficiency and Reliability

The Swiss Bankers Association (SBA) has announced the completion of the first legally recognized blockchain-driven fund transfer between major Swiss

The project, under development for over a year and a half, was led by a group of SBA member banks alongside legal and technology specialists. An internal SBA document states that all Swiss financial laws, including anti-money laundering (AML) and know-your-customer (KYC) measures, were strictly followed throughout the process. Independent legal and cybersecurity auditors also reviewed the platform to confirm its compliance with both national and international requirements.

A standout feature of this initiative was the introduction of a digital contract system that triggered the transfer automatically once all requirements—such as identity verification for both parties and adherence to transaction thresholds—were satisfied. This contract system, implemented on a permissioned private blockchain, made the transaction enforceable by law and resistant to tampering. Automating the process with smart contracts removed the need for manual processing, minimizing human mistakes and operational slowdowns.

The positive outcome of the trial has led to ongoing conversations within the SBA about wider applications for blockchain in Swiss banking. Potential future uses include instant settlement of securities trades, automated regulatory compliance, and improved transparency for international payments. Some experts estimate that such technology could lower transaction expenses by as much as 30% in high-volume scenarios, though these projections are based on early-stage data and have yet to be validated on a larger scale.

This undertaking is also part of the Swiss government’s broader push for digital finance, aiming to establish Switzerland as a global frontrunner in fintech and blockchain technology. Earlier this year, the Swiss Financial Market Supervisory Authority (FINMA) rolled out updated rules that legally recognize the use of distributed ledger technology (DLT) in the financial industry. These changes have given banks and fintechs the opportunity to trial new models for financial systems while staying within regulatory boundaries.

Although the pilot remains in its initial phase, the SBA has revealed intentions to broaden the initiative by bringing in more banks and expanding the types of financial products involved. The group is also in discussion with regulators from other countries to consider enabling cross-border blockchain transfers—potentially making global payments faster and reducing settlement times from several days to just minutes.