ING, an Amsterdam, Netherlands-based banking and financial services corporation, as per recent reports last week, has announced joining the utility settlement coin (USC) project – which aims to come up with a more efficient blockchain-based payment mechanism.
The project, which was initially set up by UBS, in 2015, aims at making the international transfers experience smoother by cutting involved costs, reducing time, and minimizing the associated risks. The USC token, which very much is like a bitcoin (BTC) token, can be used for payments and for transmitting all transaction data. Moreover, the USC token will enable immediate payments based on reflected foreign exchange rates.
In a recent Series A equity funding round, 14 banks – Banco Santander, BNY Mellon, Barclays, CIBC, Commerzbank, Credit Suisse, ING, KBC Group, Lloyds Banking Group, MUFG Bank, Nasdaq, Sumitomo Mitsui Banking Corporation, State Street Corporation, and UBS – have contributed in total a £50 million capital investment to Fnality International, which will be leading the USC initiative.
“We see that tokenization of assets and the use of distributed ledger technology offer huge potential for our industry,” states Annerie Vreugdenhil, Head of Wholesale Banking Innovation at ING. “With Fnality we are setting the standard in the financial market infrastructure of tomorrow. Our collective goal is to make settlement processes as easy as possible and we are very excited to be part of this industry-wide effort.”
Reports also suggest that the USC system will initially accept five currencies, US dollars (USD), Canadian dollars (CAD), pounds (GBP), euros (EUR), and yen (JPY).