Is UBS Also Working on Blockchain Trade Settlement?
Online retail company Overstock has launched its "cryptobonds" earlier this year and is also making progress in its blockchain trade settlement initiatives. Is UBS also working on the same project and will it be a competitor? Even as UBS has joined the collaborative platform of more than 20 global financial institutions in exploring blockchain technology, the bank is also busy with its own efforts to experiment with the distributed public ledger's applications. The bank has created an innovation lab in London back in April and is also holding The UBS Future of Finance Challenge for....
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A new report by Euroclear has looked at the regulatory and legal aspects of the use of blockchain technology in post-trade settlement in a European context. The report, Blockchain Settlement: Regulation, Innovation, and Application [PDF], with support from Slaughter and May, found that central securities depositories (CSDs) would play an important role in a blockchain-based settlement system. It also stated that regulators should not fear the use of smart contracts and distributed ledger technology any more than any other automated computer-based process prevalent throughout the settlement....
Earlier this month, UBS announced that it is in the process of creating a "settlement coin" that can be used for financial transactions. Is this yet another form of altcoin and will it rival bitcoin? The bank plans on using blockchain technology to create this settlement coin but has clarified that it will not function as a store of value, unlike most cryptocurrencies. Instead, its application could focus more on storing data regarding trade settlement between financial institutions, banks, and clients. Settlement Coin Applications. A number of other established firms have been looking....
Euroclear is best known for being one of the world’s biggest settlement houses in the financial sector. After taking a close look at blockchain technology, the company announced their first product trial: a new settlement system for the London gold market will be created. This announcement comes in the form of a partnership between US startup itBit and....
Post-trade settlement specialist Euroclear has co-authored a new report on how blockchain and distributed ledger technology can be adapted for capital markets. Written with management consulting firm Oliver Wyman, the report takes a positive stance on the technology, arguing it could eliminate delays and inefficiencies in capital markets. The publication follows news that Euroclear is working with its peers, including CME Group and the London Stock Exchange, on a consortium for post-trade settlement. Overall, the report recommends the industry take seven steps to realize the technology,....
Four banks have reportedly partnered on a blockchain project aimed at creating a means to clear and settle transactions worldwide. BNY Mellon, Deutsche Bank, Santander and UBS – the latter of which first disclosed its work on a so-called "settlement coin" last year – are hoping to launch a commercial-grade blockchain system by 2018, according to The Financial Times. The banks are working with blockchain startup Clearmatics, based in London. A formal announcement will reportedly be made tomorrow, FT's Martin Arnold reports. He explained in the article: "The utility settlement....