'Settlement Coin' is All About Banks, Not Blockchain
Why would anyone want to use a coin issued by four large banks bailed out in 2008? That's a question that many are asking after UBS, Deutsche Bank, Santander, BNY Mellon and ICAP announced last week that they had teamed up with blockchain developer Clearmatics to create a new digital currency. In a joint press release, the new consortium said that the "Utility Settlement Coin" would be used to clear and settle financial market trades on a blockchain. But while it would be easy to see this as an alternative means of settlement using a private currency owned, issued and backstopped....
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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....
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....
Four banks are teaming up to bring a blockchain inspired clearance and settlement system for worldwide transactions. BNY Mellon, Deutsche Bank, Santander and UBS believe they can launch a commercial blockchain by 2018. The banks work with a blockchain startup called Clearmatics. The Financial Times‘ Martin Arnold reports: “The utility settlement coin, based on a solution developed by Clearmatics Technologies, aims to let financial institutions pay for securities, such as bonds and equities, without waiting for traditional money transfers to be completed. Instead, they would use digital....
Two resources available almost exclusively to central banks could soon be opened up to additional users as a result of a new digital currency project designed by a little-known startup and Swiss bank UBS. One of those resources is the real-time gross settlement (RTGS) system used by central banks (it's typically reserved for high-value transactions that need to be settled instantly), and the other is central bank-issued cash. Using the Utility Settlement Coin (USC) unveiled today, the five-member consortium that has sprung up around the project aims to help central banks open-up access to....
UBS has been conducting research on blockchain tech for quite some time and just recently shared more details on its developments. One of these is the so-called "settlement coin" which can be used by financial institutions for transaction clearing. Prior to this, online retail giant Overstock has already ventured into using blockchain tech for "cryptosecurities" and trade clearing. Along with UBS, the company recognized the potential applications of the distributed public ledger in reducing transactions costs and speeding up the verification process. Blockchain Tech in Finance. Blockchain....