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Tuesday, May 18, 2021
Home News Four Global Banks Team Up to Develop New Utility Settlement Coin Based...

Four Global Banks Team Up to Develop New Utility Settlement Coin Based on Blockchain

Four of the world’s largest banks have announced a plan to develop a new form of digital cash that they say will become an industry standard to clear and settle financial trades over a private, permissioned Blockchain. 

UBS, the Swiss bank, pioneered the “utility settlement coin” and has now joined forces with  — as well as the broker ICAP — to pitch the idea to central banks, aiming for its first commercial launch by early 2018, according to an article in the Financial Times.

Journalist Martin Arnold writes that the move, to be announced on Wednesday, is one of the most concrete examples of banks co-operating on a specific blockchain technology to harness the power of decentralised computer networks and improve the efficiency of financial market plumbing.

“Today trading between banks and institutions is difficult, time-consuming and costly, which is why we all have big back offices,”  Julio Faura, head of R&D and innovation at Santander told the Financial Times. “This is about streamlining it and making it more efficient.”

The utility settlement coin, will be based on a solution developed by Clearmatics Technologies, will let financial institutions pay for securities, such as bonds and equities, without waiting for traditional money transfers to be completed. Rather they would use digital coins that are directly convertible into cash at central banks, cutting the time and cost of post-trade settlement and clearing.

The coins, each convertible into different currencies, would be stored using the Blockchain, or distributed ledger technology, allowing them to be quickly swapped for the financial securities being traded.

Read more here.

 

 

 

Richard Kasteleinhttps://www.the-blockchain.com
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, 'The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, the Netherlands where he has set down his anchor to raise a family and write. Founder and publisher of industry publication Blockchain News (EST 2015) and director of education company Blockchain Partners (Oracle Partner) – Vancouver native Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He has written over 2500 articles on Blockchain technology and startups at Blockchain News and has also published in Harvard Business Review, Venturebeat, Wired, The Guardian and a number of other publications. Kastelein has an Honorary Ph.D. and is Chair Professor of Blockchain at China's first blockchain University in Nanchang at the Jiangxi Ahead Institute software and Technology. He has over a half a decade experience judging and rewarding some 1000+ innovation projects as an EU expert for the European Commission's SME Instrument programme as a startup assessor and as a startup judge for the UK government's Innovate UK division. Kastelein has spoken (keynotes & panels) on Blockchain technology at over 50 events in 30+ cities.
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