Introduction
A collaborative effort involving AMINA Bank AG, based in Zug, and Crypto Finance Group, along with various Swiss financial institutions, has successfully completed a pilot project that illustrates the potential of distributed ledger technology (DLT) to enhance traditional banking systems. This initiative, executed on the Google Cloud’s Universal Ledger (GCUL), demonstrated the capability for near-instantaneous settlement of domestic fiat transactions among Swiss-regulated banks, operating around the clock with compliance, security, and governance in line with current banking standards.
Goals and Implications
The goal of embedding DLT within the existing financial structure is to allow for acceleration in transaction settlements without the need to introduce new digital currencies or change supervisory frameworks. Thus, regulatory stability can be preserved while simultaneously enabling significant innovation in finance.
This pilot positions Switzerland as a frontrunner in the evolution of payment systems. By leveraging programmable wholesale commercial bank money through GCUL, it has opened pathways for institutions to facilitate smooth account-to-account transactions on a larger scale, effectively minimizing operational challenges, lowering funding expenses, and enhancing client services across various sectors, including retail, corporate, and institutional.
Key Statements
CEO of AMINA Bank, Franz Bergmueller, emphasized the initiative’s importance by stating, “Google Cloud’s GCUL is a testament to the fact that innovation and stability can coexist. This pilot allows for near-real-time, compliant settlements within existing banking practices. AMINA is set to take this model globally, demonstrating DLT’s transformative potential in finance.”
Stijn Vander Straeten, the CEO of Crypto Finance Group, noted that this project represents a pivotal moment for the digital financial market, reinforcing Switzerland’s position as a significant player in digital finance by establishing a secure foundation for digital payments and tokenized assets.
Operational Structure
As for the operational structure of the pilot, Crypto Finance Group acted as the Currency Operator, overseeing participant onboarding and ensuring adherence to transaction regulations. Institutions used GCUL directly for settlement and payment execution while adhering to their established processes and regulatory responsibilities. AMINA Bank integrated GCUL into its core banking system, which enabled selected clients to benefit from nearly instantaneous transaction settlements with full transparency, all while maintaining existing lending and deposit activities.
Future Prospects
According to Matt Renner, Chief Revenue Officer at Google Cloud, the pilot exemplifies how modern technology can enable secure, compliant, and near-instant payments that align with regulatory expectations.
Looking forward, the robust design of GCUL supports continuous payments for both traditional and tokenized assets, allowing banks to introduce innovative financial products, create programmable payment systems, and manage liquidity dynamically. Now that the pilot phase is concluded, the next stage involves expanding the platform, integrating more financial institutions, and moving from controlled testing to active operations.
