Top Banks to Invest $50 Million to Build Blockchain Settlement System
Sources have claimed that some of the worlds top banks are currently investing around $50 million to build a blockchain-powered digital cash system for transaction settlements. A Reuters report cited “people familiar with the plans,” said possibly a dozen unspecified banks are involved in the project.
It was reported that an earlier project for a blockchain-based currency settlement coin was unveiled by Swiss bank UBS Group AG and London-based technology start-up Clearmatics in 2015. It was claimed that it aims to develop a system to make clearing and settlement in the financial markets more efficient.
It was reported that the coin would be a digital cash that is equivalent to central bank-backed fiat currencies like the dollar or euro that would be blockchain-powered. The coin would be convertible at parity and backed by cash assets held at a central bank. Spending the digital coin would be the same as spending the fiat currency it is paired with.
Although the deal has purportedly not yet been finalized one of Reuters’ sources claimed that the latest development involves around a dozen major banks investing in a new entity dubbed Finality, which could launch as early as 2020.
While the banks involved in the $50 million investment round have not been disclosed, it was noted that the institutions that were involved previously in the UBS project included UBS, Banco Santander, Bank of New York Mellon Corp, State Street Corp, Credit Suisse Group AG, Barclays PLC, HSBC Holdings Plc and Deutsche Bank AG.
In a statement given to Reuters, a Barclays spokesperson reportedly refrained from commenting on the alleged deal, but noted that:
“We are a member of the USB Project and can confirm that the Research & Development phase is coming to an end.”
It was reported that other representatives from other banks did not provide a comment. As Cryptopayments has reported earlier this year, the US banking giant JPMorgan has revealed plans to launch its own blockchain-powered coin dubbed ‘’JPM Coin.’’