By Several of the world’s largest banks are allegedly investing around $50 million to create a blockchain-based digital cash settlement system.
As per a Reuters report released on Friday which cited “people familiar with the plans,” stated that as many as a dozen major banks are joining the effort. All the banks involved will reportedly be creating a new entity dubbed Fnality, which could launch in 2020.
In 2015, UBS, a Swiss banking institution was rumoured to be working on a cryptocurrency which could be “linked to real-world currencies and connected to central bank accounts” along with Clearmatics, a blockchain startup.
Back in August 2016, another four bank – BNY Mellon, ICAP, Deutsche Bank and Santander joined forces with UBS and Clearmatics to work on the “utility settlement coin” (USC) project. Robert Sams, founder of Clearmatics told the press that USC is a form of cash which is “fully backed by cash assets at the central bank.”
As per the Reuters report, Bank of New York Mellon Corp, State Street Corp, Credit Suisse Group, Barclays, HSBC Holdings and Deutsche Bank have also joined the initiative.
A spokesperson from Barclays told Reuters:
“We are a member of the USC Project and can confirm that the Research & Development phase is coming to an end.”
This news follows hot on the heels of JP Morgans announcement its own cryptocurrency which is called JPM Coin which will be used to settle transactions between clients of its wholesale payment business in real time.
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