Swiss Banks Pilot DLT for Near-Real-Time Fiat Payment Settlement → Adoption

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Briefing

AMINA Bank and Crypto Finance Group successfully piloted a Distributed Ledger Technology (DLT) solution on Google Cloud Universal Ledger for domestic Swiss Franc payments, demonstrating that core banking systems can achieve near-real-time, 24/7 settlement while retaining commercial bank money and full regulatory compliance. This integration fundamentally re-architects the post-trade process, directly addressing the systemic inefficiency where cross-border transactions traditionally incur significant costs and take multiple days to settle.

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Context

The prevailing challenge in global financial services is the fragmented, multi-day settlement cycle for interbank payments, particularly across borders, which introduces significant counterparty risk, necessitates high liquidity buffers, and inflates operational costs. This reliance on legacy correspondent banking networks and batch processing creates a substantial drag on capital efficiency across the entire financial ecosystem.

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Analysis

The adoption alters the core settlement mechanics by integrating the DLT platform, Google Cloud Universal Ledger (GCUL), directly into the banks’ existing core-banking systems. This architecture transforms the payment instruction from a sequential, intermediary-dependent message into an atomic transaction on a shared, immutable ledger. The chain of effect is immediate → the DLT acts as a single source of truth for all participants, eliminating the need for complex, time-consuming reconciliation processes and instantly freeing up capital previously held as float or collateral. This proof-of-concept is significant for the industry because it establishes a blueprint for modernizing the trillion-dollar wholesale payment market without requiring the creation of a new central bank digital currency (CBDC).

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Parameters

Lead Institutions → AMINA Bank AG, Crypto Finance Group
Technology Platform → Google Cloud Universal Ledger (GCUL)
Core Use Case → Near-Real-Time Settlement
Asset Class → Swiss Franc Commercial Money
Operational Metric Achieved → Compliant, 24/7, near-instant settlement

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Outlook

The immediate next phase involves scaling the platform by onboarding additional financial institutions and expanding the use case to cross-border and cross-currency payments, which represents a far greater market opportunity. This successful pilot sets a new operational standard for institutional finance, pressuring competitors to adopt DLT for wholesale settlement to avoid being structurally disadvantaged by superior capital velocity and lower operational expenditure.

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Verdict

This DLT integration validates a compliant, systemic pathway for traditional finance to achieve T+0 settlement, positioning the shared ledger as the inevitable foundational layer for future interbank liquidity.

Signal Acquired from → finextra.com