UBS, Nasdaq and BNY Mellon Prepare to Launch International Settlement Token During the Year
A group of companies led by the largest Swiss financial holding UBS employs “bitcoin-similar token ” for settlements for cross-border transactions, writes The Wall Street Journal on Monday, calling this initiative one of largest in the sector blockchain to this day.
In addition to UBS, 14 major American, European and Japanese financial institutions participate in the initiative. companies, in Tom Barclays, Nasdaq, Credit Suisse, BNY Mellon, CIBC, State Street, Banco Santander, Commerzbank, and ING. Together they are founded a company called Fnality International and invested £ 50 million in the development of the USC token. To provide USC will be use the bank’s currency assets, central bank.
USC is under development already for four years. Token will be function as a payment mechanism and means transfer of related information about transactions, which will allow cut time and costs at settlements.
“We eliminate settlement risk, counterparty risk, market risk. Everything these risks lead to increased costs and make the market less efficient “, – stated Head of Strategic Investments, UBS Haider Jaffrey.
Fnality head Romios Ram explained that him the company is working with regulators in several countries to receiving required approvals. He expects the full functionality of the tool will acquire within the next 12 months.