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According to Foresight News, UBS and Deutsche Bank have announced their participation in a trial conducted by the European Central Bank (ECB) to explore the use of distributed ledger technology (DLT) for wholesale settlement. As part of this initiative, the two banks simulated tokenized deposit payments between financial institutions. The trial utilized the Bundesbank's Trigger solution, which enables blockchain-based systems to connect with the Trigger Chain, facilitating payments in central bank money through the Target2 payment system.In the context of tokenized deposits, the process involves the destruction of tokens on the sending blockchain and their minting at the receiving bank. The trial included two separate experiments. The first focused on time-sensitive euro payments, highlighting the potential for DLT to enhance efficiency and speed in financial transactions. The second experiment simulated transactions between Deutsche Bank's London branch and UBS in Switzerland, involving the exchange of British pounds and Swiss francs, with settlements conducted in euros.These trials represent a significant step in exploring the integration of blockchain technology into traditional banking systems. By simulating real-world scenarios, the banks aim to assess the feasibility and benefits of using DLT for cross-border payments and settlements. The experiments underscore the growing interest among financial institutions in leveraging blockchain to improve transaction processes, reduce costs, and enhance security.The ECB's initiative reflects a broader trend in the financial industry towards embracing digital innovations. As central banks and financial institutions continue to explore the potential of DLT, these trials provide valuable insights into the practical applications of blockchain technology in the banking sector. The successful execution of these simulations could pave the way for further adoption of DLT in wholesale banking operations, potentially transforming the landscape of international finance.