4 major banks plan to launch “Utility Settlement Coin”

Announcements | August 25, 2016 By:

UBS, Deutsche Bank, Santander and BNY Mellon have partnered on a blockchain project aimed at creating a means to clear and settle transactions worldwide.

The banks has developed a “Utility Settlement Coin” (USC), which is a digital cash equivalent of each of the major currencies backed by central banks, such as the dollar or euro, rather than a decentralized new digital currency such as bitcoin.

The Utility Settlement Coin, based on a solution developed by London-based blockchain startup 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 coins that are directly convertible into cash at central banks, cutting the time and cost of post-trade settlement and clearing.

If implemented, the new cryptocurrency would be the first to be used officially between major financial institutions.