Banks to invest US$50M in digital cash settlement project
A Reuters report revealed that “several of the world’s largest banks” are in the process of investing around US$50 million to create a digital cash system using blockchain to settle financial transactions.
Citing people familiar with the plans, the project was known as “utility settlement coin” and was first proposed by Swiss bank UBS Group AG and London-based tech startup Clearmatics in 2015.
It aims to develop a system to make clearing and settlement in financial markets more efficient.
The source also stated that around a dozen banks are investing in a new entity called Fnality which would run the project.
The new system could launch in 2020. The deal has not been finalised so there is a possibility that details may change.