Swiss banks use DLT for real-time settlement of fiat, is TradFi quietly becoming blockchainized?

Question

[Coin World] Switzerland has launched an interesting pilot project: Amina Bank, a crypto bank, in collaboration with Crypto Finance Group and several partner banks, has utilized Google Cloud's Universal Ledger to achieve near real-time, round-the-clock fiat settlement between regulated banks.

The key point is that they haven't issued any new coins at all; they are just using traditional commercial bank money to run the entire process through distributed ledger technology (DLT). This demonstrates that under the existing regulatory framework, the underlying technology of blockchain can seamlessly integrate with traditional banking systems without starting from scratch.

What is even more worth paying attention to is the subsequent imaginative space. The official statement is that this pilot project lays the groundwork for cross-border payments, multi-currency real-time Settlement, and even blockchain payment integration for physical store POS machines. In other words, the traditional financial system may be quietly completing a round of infrastructure transformation into Web3 - it is not just a concept, but a solid technical implementation.

ShitcoinConnoisseur · Accepted Answer

Huh? Directly using DLT for fiat Settlement, Switzerland is playing this move quite steadily.

Traditional finance has finally lowered its head; it&#39;s fine without issuing coins.

This is a real breakthrough at the fundamental level, much more reliable than those new coins that are full of hot air.

Google Cloud + DLT, it seems Web3 has really entered the heart of traditional finance.

Nodding in agreement, operating under a regulatory framework is the long-term solution; the barbaric growth model should have died long ago.

If cross-border payments can truly achieve instant Settlement, many intermediaries will be out of jobs.

Wait, isn&#39;t this just another way to open up CBDC?

Switzerland never disappoints me; it really has taste.

ConfusedWhale · Answer

Wow, this is the real way to get on board. No need to issue coin, just transform the underlying system. TradFi is taking this seriously.

VitalikFanboy42 · Answer

TradFi has finally begun to face DLT, but these people took a long time to realize what we already knew...

Running without coins shows that the underlying system is indeed fine; the problem has always been with political stances and the division of interests.

If we truly play with coins for real-time Settlement, SWIFT should be worried, haha.

By the way, how is the Google Cloud Universal Ledger working out? Are there any publicly available performance metrics?

I&#39;m quite looking forward to the POS integration part; if it can really be rolled out, the changes at the retail end will be significant...

But they are just making a fuss during the pilot phase; let&#39;s talk when it’s actually in large-scale commercial use. The processes in banks are very complicated.

SadMoneyMeow · Answer

Wow, Switzerland really nailed it this time, directly DLT-izing traditional bank money without issuing coins.

Cross-border payments should have been done this way long ago, finally someone is taking real action.

AirdropSweaterFan · Answer

Switzerland&#39;s recent actions are quite something; they can run settlements without needing to issue coins, this is real technological empowerment.

Traditional finance has finally started to be honest; we have to admit that DLT can indeed solve pain points.

If cross-border payments really take off, the fees could be more than halved, right?

However, whether Google Cloud can be stable is a question; we can&#39;t afford to have it fail at a critical moment.

Wait a minute, does this mean that our previous innovations in the crypto world were actually just reinventing the wheel?

I&#39;m a bit looking forward to the day when POS machines are integrated; otherwise, it&#39;s still too much of a hassle now.

SchroedingerMiner · Answer

Wow, the Swiss bank&#39;s operation is quite ruthless. DLT is directly involved in fiat Settlement, this is the signal we&#39;ve been waiting for.

LiquidityNinja · Answer

Switzerland is really doing something here, running fiat settlement directly with DLT without issuing coins, this idea is quite brilliant... Has TradFi finally woken up?

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Wait, Google Cloud is involved? It feels like TradFi has installed a new engine for itself, but it&#39;s still the old drivers behind the wheel...

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Can near-real-time settlement really solve the pile of cross-border issues? Or is it just another pilot...

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I actually appreciate the point of not issuing coins; finally, someone realizes that DLT doesn&#39;t necessarily need coins to be useful.

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Blockchain payment with POS machines? Sounds great, but will it turn into another useless application...

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To put it bluntly, TradFi is quietly learning our tech stack, slowly eroding centralized advantages, which is quite interesting.

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If this set can run under a regulatory framework, it means giving all banks a signal: it&#39;s time to act.

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The real core is the all-weather nonstop operation; those overnight settlement fees from before deserve to die.

MrRightClick · Answer

Oh, this is the right path, using DLT for fiat Settlement directly without issuing coins, TradFi has finally figured it out.

Switzerland&#39;s operation is indeed tough, with Google Cloud backing + regulatory framework, this is the true path that blockchain should take.

Wait, can Amina Bank and traditional banks really stabilize this? Or is it just another round of hype?

Seamless integration into traditional banking systems? Sounds simple, but will the actual timeline drag on for another three to five years?

POS payment integration... If this really happens, this would be the killer app, not those airy concepts.

To be honest, I am more concerned about when this thing will truly land, don&#39;t finish this pilot and then go silent.

Real-time Settlement running all the time, if this is pushed globally, how much can the fees for cross-border remittances be cut down?

I feel that the integration of TradFi and encryption is not that exaggerated, it&#39;s just a change in how the ledger is recorded, at its core, it&#39;s still the same thing.