Digital cash settlement using blockchain on track
Digital cash settlement using blockchain seems to be around the corner, Diamandis newsletter reports. Banks are coming together to fix settlement friction at scale.
Several of the world’s largest banks are investing $50 million to create a digital cash system using blockchain technology to settle financial transactions. Back in 2015, the project, previously referred to as the "utility settlement coin," or USC, started as a joint proposal from Swiss bank UBS Group AG and London-based technology startup Clearmatic.
Once complete, USC would provide a system for financial markets to more efficiently clear and settle transactions. A dozen or so banks are finalizing investment details to fund an entity called Fnality to coordinate the project. Banks involved include 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.