Top Banks 'Investing $50 Million' to Build Blockchain Settlement System

Around a dozen banks are said to be spending $50 million to build a blockchain-based digital cash settlement system, according to Reuters.

AccessTimeIconMay 17, 2019 at 9:00 a.m. UTC
Updated Aug 18, 2021 at 11:26 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Some of the world's biggest banks are said to be investing around $50 million to build a blockchain-based digital cash settlement system.

A Reuters report on Friday, citing “people familiar with the plans,” said possibly a dozen unspecified banks are involved in the project. The participating banks will reportedly be setting up a new entity called Fnality for the project, which could launch next year.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    The last regression video of the year 3.67.0
  • Back in 2015, Swiss banking giant UBS was said to be working on a cryptocurrency that would be “linked to real-world currencies and connected to central bank accounts” along with blockchain startup Clearmatics.

    Indeed, Clearmatics seems to have filed a trademark application for the word “Fnality,” according to information from trademark service Justia Trademarks.

    Later, in August 2016, four other banks – BNY Mellon, ICAP, Deutsche Bank and Santander – joined UBS and Clearmatics on the “utility settlement coin” (USC) project. Clearmatics founder Robert Sams told CoinDesk at the time that USC is as a form of digital cash that is “fully backed by cash assets at the central bank.”

    According to the Reuters report, Bank of New York Mellon Corp, State Street Corp, Credit Suisse Group, Barclays, HSBC Holdings and Deutsche Bank have also been working on the USC project.

    A Barclays spokeswoman told Reuters:

    “We are a member of the USC Project and can confirm that the Research & Development phase is coming to an end.”

    The news comes soon after investment banking giant JPMorgan revealed its own cryptocurrency, dubbed JPM Coin, to settle some of its transactions between clients of its wholesale payments business in real time.

    Dollars image via Shutterstock 

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.