After the crypto hype

It is not new currencies, but new settlement models, that will shape the future of payments. A practical perspective from Siemens and KPMG on real-time liquidity management using blockchain technology.

For years, cryptocurrencies dominated the debate on the future of the financial system. Driven by technological innovation and new financial concepts, expectations of a fundamental transformation steadily grew. That initial hype has now subsided. What remains is a core idea: value can now be moved in real time, in a programmable way and around the clock.

While many market participants are still taking a wait-and-see approach, Siemens Treasury, for example, has already explored what works beyond the hype. The organization is not only experimenting with blockchain-based processes but is now applying these approaches in day-to-day payment operations.

The key takeaway: it is not about new currencies, but about new settlement models. And these are increasingly finding their way into the daily operations of corporate treasury functions.

The wide range of initiatives in payments – from the digital euro and SWIFT shared ledger to bank-driven solutions such as commercial bank money tokens – can be confusing. The key question is: which of these developments already deliver real value for organizations today?

In practice, the most effective approaches are those built on existing legal frameworks and familiar forms of money. The most pragmatic route is through regulated money within established ecosystems. New currencies or closed, isolated solutions generate little impact as long as critical mass among market participants is missing. The more relevant question is how existing book money can be digitized so that it becomes available in real time and can be embedded directly into business processes. This is exactly where the first productive solutions are emerging – at the intersection of technology and functioning networks.

A practical example: since 2021, Siemens has been using blockchain-based accounts provided by a relationship bank in Europe, Asia and North America to move liquidity across continents in real time. Automated logic balances accounts, executes currency conversions and provides funds across locations.

The result is an infrastructure that directly supports global business. Liquidity is available exactly where it is needed, at any time – regardless of time zones or cut-off times. For treasury, this represents a paradigm shift: instead of holding liquidity based on forecasts, it can be allocated dynamically and on demand. Capital becomes more flexible and can be deployed more productively.

Digital money market transactions in seconds
The potential is also evident in digital money market transactions: Siemens used this infrastructure when issuing a digital commercial paper on the SWIAT platform, fully digital and with synchronous payment to a Siemens account. From issuance to receipt of funds, the process took around 90 seconds instead of several days. Delivery and payment occur simultaneously, eliminating settlement risk.

For treasury teams, this goes beyond a technical innovation: it demonstrates how short-term financing may work in the future and how significantly this could change liquidity management. The faster funds become available, the less buffer is required.

Synchronized settlement (DvP and PvP)
Building on this experience, Siemens is developing models in which payment and delivery components are executed in a single step – for example, delivery-versus-payment for digital securities or goods, and payment-versus-payment for immediate, low-risk foreign exchange transactions. These models reduce delays and counterparty risk and align directly with operational process chains.

Digital ecosystems and the importance of network effects
In projects related to new digital payment mechanisms – from the digital euro to private token and stablecoin models – a recurring pattern emerges: technological maturity is necessary but not sufficient. Modern payment infrastructures must enable real-time processing, 24/7 availability and programmable execution. On their own, however, these features do not lead to widespread adoption.

A look at the eCNY illustrates this clearly: despite technical maturity and a large, unified currency area, adoption remains limited. The reason lies less in missing functionality and more in the fact that established ecosystems such as Alipay or WeChat Pay already cover everyday payments comprehensively. A parallel system does not create additional value if it does not significantly improve existing processes. 

For organizations, the key factor is economic viability: the additional integration effort is worthwhile only if new functionalities are available where they can also be widely used. Only the combination of technology and reach creates tangible benefits – such as faster processing, lower risk or more efficient liquidity use. This is what drives adoption and ultimately creates a sustainable network effect.

The experience to date shows that progress is not driven primarily by a specific technology, but by how financial processes can be designed. What matters is the interplay of three elements – regardless of whether implementation is based on instant payments, tokenized deposits or blockchain.

1. Money – and the payment infrastructure that moves it
   Modern use cases require reliable payment rails. One example is commercial bank money tokens (CBMTs): these represent standard demand deposits, but are digitized in a way that allows them to be transferred in real time and used programmably. The legal nature of the money remains unchanged – including protection mechanisms, accounting rules and settlement finality within the core banking system.
2. Programmable logic – clear rules instead of downstream processes
   Automation is driven by rules that define when a payment is triggered. Whether implemented as rule sets via APIs or as logic within a treasury system or another digital platform, what matters is clarity of conditions. If these are precisely defined, the logic can be executed regardless of the technical infrastructure.
3. Reliable data – the foundation of every automation process
   The timing of a payment is usually defined by clear operational data – for example, confirmed delivery of goods, measured service consumption or digitally tracked production progress. Only when this information is structured, timely and reliable can financial processes be safely automated on that basis. Data therefore becomes the foundation for event-driven processes across organizational boundaries.

Experience shows that the evolution of payments does not require new currencies or radical technological disruption. What matters is that regulated money becomes digitally usable, clear rules are defined and reliable data is available. When these elements come together, automation emerges almost naturally – regardless of whether payments are executed via instant payments, tokenized deposits or blockchain.

The focus is therefore shifting away from the technology itself and back to business value: faster processes, lower risks, reduced manual effort and financial workflows aligned with actual business activity. Organizations and banks do not need to wait for future standards. They can already begin today – gradually moving from vision to robust, practical reality.

First published in Private Banking Magazine