Six big banks join blockchain digital cash settlement project
ZURICH: Six new banks have joined a UBS-led effort to create a digital cash system that would allow financial markets to make payments and settle transactions quickly via blockchain technology.
The group aims to launch the system late next year.
Barclays, Credit Suisse, Canadian Imperial Bank of Commerce, HSBC, MUFG and State Street have joined the group developing the “utility settlement coin” (USC), a digital cash equivalent of each of the major currencies backed by central banks, UBS said on Thursday.
The group is in discussions with central banks and regulators and is aiming for a “limited ’go live’” in the latter part of 2018, UBS’s head of strategic investment and fintech innovation told the Financial Times.
The Swiss bank first launched the concept in September 2015 with London-based blockchain company Clearmatics, and was later joined on the project by BNY Mellon, Deutsche Bank, Santander and brokerage ICAP.
The USC would be convertible at parity with a bank deposit in the corresponding currency, making it fully backed by cash assets at a central bank. Spending a USC would be the same as spending the real currency it is paired with.
Blockchain works as a tamperproof shared ledger that can automatically process and settle transactions using computer algorithms, with no need for thirdparty verification.
Because it does not require manual processing, nor authentication through intermediaries, the technology can make payments faster, more reliable and easier to audit. — Reuters
It noted that DRB has a new manufacturing plant in Tanjung Malim which would be ready in five years’ time, but the first Proton car made with Geely’s technology is expected to roll out by the end of next year or in 2019.
It added, Geely would facilitate Proton in terms of technology and at the same time assemble its four-wheel drive model, intelligent artificial car and develop their right-hand drive technology in Malaysia known as the Boyue.
Meanwhile, on DRB’s 1QFY18 results, Kenanga Research said the group’s 1QFY18 core losses was at RM169.7 million, which was below expectations.
It noted that on a quarteron-quarter (q-o-q) basis, DRB’s registered pre-tax loss was at RM72.7 million, compared to a loss of RM255.6 million in 4QFY17. It explained that this was due to better performances in the auto sector as well as lower losses at Proton, arising from higher volume sales (an increase of 3.3 per cent).
On a year-on-year (y-o-y) basis, the research team noted that the group’s 1QFY18 registered lower loss before tax of RM72.7 million compared with RM121.3 million in 1QFY17. This was also attributed to the reduced losses by Proton, higher profit contribution from the services sector, with the inclusion of Pos Malaysia Bhd’s profits, as well as better results from other subsidiary companies.
“However, the share of results of joint ventures and associated companies were lower. 1QFY18 reported loss after tax, am or tis at ion, and minority interest (LATAMI) of RM169.7 million was flat compared to RM169.3 million.
All in, Kenanga Research said it expected losses to continue to narrow in the subsequent quarters, upon the completion of the divestment in loss-making Lotus and Proton stakes to Geely, and in anticipation of better car sales on the back of improving consumer sentiments.
It retained its FY18 and FY19 earnings estimates and reiterated its ‘market perform’ call on the stock.