UBS developing virtual currency for mainstream banking

FinTech | September 16, 2015 By:

UBS is developing a prototype virtual currency based on blockchain technology that it hopes will be used by banks and financial institutions as a basis to settle mainstream financial markets transactions.

CIO Oliver Bussmann said the coin could be the first building block in the widespread adoption of blockchain-based platforms in mainstream financial markets.

The digital coin is being developed in collaboration with London-based Clearmatics, a startup which develops blockchain-based software to enable clearing and settlement of financial transactions.

UBS said the bank does not plan on issuing the digital coin itself but hopes to work with other market participants – including asset managers, regulators and market structure providers like clearing houses and exchanges – for an industry-wide product.

Hyder Jaffrey, e-commerce commercial director at UBS, said the bank had already reached out to potential partners, but would not comment on specific institutions.

UBS is a Swiss global financial services company.