Researchers at a UK innovation lab operated by Swiss banking giant UBS are developing a blockchain implementation for settling transactions.

As reported by Financial News, the lab, opened earlier this year, is currently at work on a cryptocurrency that would be "linked to real-world currencies and connected to central bank accounts". The project is being undertaken in collaboration with blockchain startup Clearmatics.

UBS is reportedly also working with BNY Mellon on other blockchain-related initiatives. BNY Mellon disclosed earlier this year that it had been developing an internal rewards system using an in-house cryptocurrency.

UBS innovation lab chief Alex Batlin told CoinDesk last month that the lab is currently involved in a variety of blockchain-related projects, noting at the time:

The bank's interest in the technology dates back to last year, when in an extensive report on bitcoin, UBS suggested that blockchain applications" could reduce systemic costs, and provide faster, [more] secure, transfers – particularly in the international arena".

The report further revealed UBS has an interest in blockchains that extends beyond bitcoin, as it is experimenting with smart bond applications using a private fork of Ethereum.

UBS's smart bond platform built on ethereum #blockchain #fintech pic.twitter.com/rwblV8IRwR

— Anna Irrera (@annairrera) September 2, 2015

Image Credit: 360b / Shutterstock.com