As per recent reports, many undisclosed large banks have jointly collaborated on investing $50 million, to develop a digital cash settlement solution.
Around a dozen of the world’s largest banks are investing into a new entity – Fnality, which would be in charge of the project called “utility settlement coin” (USC), a system that focuses on making the clearing and settlement process in the financial markets more efficient by utilizing a digital cash instrument.
The USC system, which was first proposed by UBS, a Swiss multinational investment bank, and Clearmatics, a London-based tech startup, in 2015, aims at leveraging the blockchain tech to settle financial transactions, in its attempt to make the entire financial transaction process simpler and achieve significant cost reductions.
Speculative reports suggest that the system, which is still not finalized, is expected for a 2020 launch. UBS, in its earlier reports, confirmed its involvement in earlier phases of the project, with cooperation from Banco Santander, Bank of New York Mellon, State Street, Credit Suisse Group, Barclays, HSBC, and Deutsche Bank.