6 banks in new digital cur­rency pro­ject

Banking Frontiers - - News / Blockchain -

Six of the world’s largest banks have come to­gether in a pro­ject to cre­ate a new form of digital cash. The new sys­tem is ex­pected to be launched in 2018 for clear­ing and set­tling fi­nan­cial trans­ac­tions over blockchain. The banks - Bar­clays, Credit Suisse, Cana­dian Im­pe­rial Bank of Com­merce, HSBC, MUFG and State Street - have teamed up to work on the ‘util­ity set­tle­ment coin’, created by Switzer­land’s UBS to make fi­nan­cial mar­kets more ef­fi­cient. The pro­ject has reached a new phase of devel­op­ment in which the mem­bers aim to deepen dis­cus­sions with cen­tral banks and to work on tight­en­ing up its data pri­vacy and cy­ber se­cu­rity pro­tec­tions. Hy­der Jaf­frey, head of strate­gic in­vest­ment and fin­tech in­no­va­tion at UBS, said the bank is in dis­cus­sions with cen­tral banks and reg­u­la­tors and it will con­tinue that over the next 12 months with the aim of a lim­ited ‘go live’ at the back end of 2018. The util­ity set­tle­ment coin, based on a prod­uct de­vel­oped by Clear­mat­ics Tech­nolo­gies, aims to let fi­nan­cial groups pay each other or to buy se­cu­ri­ties, such as bonds and equities, without wait­ing for tra­di­tional money trans­fers to be com­pleted.

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