At London's Level 39 technology centre, UBS is working on a new project using the blockchain technology. A second Swiss company is part of the project, research by finews.ch showed.
A couple of days ago, finews.ch reported that UBS is working on a loyalty program based on crypto tokens at Level39, Europe's largest technology centre for fintech solutions. In a modern adaptation of the so-called «Key Points», the currency UBS uses to reward customers for their loyalty, the bank now wants to encrypt the points earned and make them tradable.
The experiment in the closed environment of a laboratory is thought to deliver insights into transactions with digital crypto currencies. That at least is what the UBS technology geeks expect.
UBS in Cooperation With Telecom Giant
But the banking giant isn't alone to invest in this experiment, research by finews.ch revealed. The partner of the institute isn't from the financial sector yet prominent nonetheless: Swisscom, Switzerland's biggest telecom operator.
That the blue (Swisscom) and red (UBS) giants are working hand in hand on the blockchain technology is a known fact among fintech nerds. This is however the first time that a concrete project has become public.
«The aim of the project is to gain experience with the development and management of crypto currencies and detect business cases for future projects,» a Swisscom spokesman told finews.ch.
Business Opportunities Sought
Experts say that the Swisscom, a leading technology supplier, is looking for business opportunities, where the blockchain technology could speed up procedures.
Areas of particular interest to the technology specialists at Swisscom are logistics, communications between computers, online contracts and identity checks.
The telecom company, which operates a number of data processing centers, also wants to sell infrastructure for future blockchain services.
Anathema to Libertarian Nerds
This plan is anathema to fintech nerds as the control of specific blockchains in the hands of large corporations goes against the libertarian principles of early fintech developers.
Companies such as UBS and Swisscom are on the lookout for digital standard solutions, which can be used profitably. UBS, Swisscom, SIX payment services company, and several other banks are working together to make the App Paymit the predominant digital vallet in Switzerland.
