Swiss banks explore instant fiat settlement via Google Cloud Universal Ledger

Amina Bank, a fully regulated Swiss crypto bank, has partnered with Deutsche Börse’s Crypto Finance Group to pilot a real-time fiat payment settlement trial among Swiss banks on Google Cloud’s Universal Ledger.

The pilot program allows 24/7 payment settlements across institutions, while maintaining compliance with Swiss financial regulatory standards.

Amina Bank and Crypto Finance Group issued a joint statement announcing the completion of a landmark pilot program that demonstrated how DLT (distributed ledger technology) can be used to modernize use cases, including cross-border and cross-currency payments, as well as point-of-sale settlements. The successful pilot program included several other unnamed Swiss banks.

The pilot conducted on GCUL enables near-instant, around-the-clock fiat transaction settlements among Swiss-regulated banks. It lays the foundational groundwork for addressing inefficiencies currently experienced in global payment systems.

The pilot also demonstrated how modernized payments can be achieved without overhauling existing regulatory frameworks or creating a new form of digital currency. All the institutions involved maintained the compliance and security standards of traditional banking, noted the statement. 

Bergmueller says innovation and stability are not mutually exclusive

Franz Bergmueller, Amina Bank’s CEO, said Google’s GCUL proved that innovation and stability are not mutually exclusive. He touted that his bank’s global network and reach positioned it to pilot the program globally, adding that this is an opportunity for his bank to truly demonstrate DLT’s ability to transform financial systems worldwide.

Meanwhile, Stijn Straeten, CEO of Crypto Finance Group, emphasized that the pilot demonstrated how financial institutions are collectively enabling the next generation of global financial markets. He added that the pilot’s success strengthens Switzerland’s position as a hub for innovations in digital finance.

“As the Currency Operator for this pilot, we can build a trusted foundation for digital payments and tokenised assets.” 

–Stijn Straeten, CEO of Crypto Finance Group

Crypto Finance Group was designated as the Currency Operator for this pilot program, ensuring the clear definition of transaction rules.

The group also served to ensure participating financial institutions adhered to GCUL’s processes. Crypto Finance also facilitated the onboarding of participating banks and handled compliance monitoring. The respective parties directly executed payments and settlements. 

Renner supports the Swiss vision for future financial infrastructure

Matt Renner, President and Chief Revenue Officer at Google Cloud, stated that he supports Switzerland’s vision for the future of financial infrastructure. He added that cloud-based infrastructure can transform the country’s financial landscape while observing regulatory requirements. 

Renner also explained that Amina Bank and the other financial institutions embedded the technology in their main banking stacks. The institutions then granted select clients near-real-time, secure, and compliant payment systems that work, added the Google Cloud CRO.

Meanwhile, Amina Bank said GCUL’s DLT integrates smoothly with everyday banking workflows. The model will empower institutions to develop and launch client services on Google’s infrastructure without impacting their lending activities or deposit base. 

The crypto bank went on to claim that the successful completion of the pilot program laid the roadmap for broader implementation. The next phase of the program will involve onboarding more institutional clients to expand the platform. 

The pilot is expected to progress smoothly from controlled testing to live operations and eventually introduce advanced capabilities. Amina Bank says that POS integrations for consumers and cross-border payments are next on the testing agenda. 

The crypto bank’s statement comes days after its Hong Kong subsidiary (Amina HK) received regulatory approval to offer crypto spot trading and custodial services to professional Hong Kong investors.

The bank obtained its uplifted Type 1 license from the Securities and Futures Commission (SFC), marking it as the first international banking institution to receive this approval.