BNY Mellon and Deutsche Bank have joined the Utility Settlement Coin (USC) initiative, designed to facilitate payment and settlement for institutional markets using blockchain technology.
The initiative, which is led by UBS and Clearmatics, will focus on wider market structure implications of blockchain technology as well as developing market integration points for the technology in a settlement coin structure.
“Digital cash is a core component of a future financial market fabric based on blockchain technologies,” said Hyder Jaffrey, head of strategic investment & FinTech innovation at UBS Investment Bank.
“There are several digital cash models being explored across the Street. The Utility Settlement Coin is focussed on facilitating a new model for digital central bank cash.”
ICAP and Santander have also joined BNY and Deutsche Bank on the concept which is tasked with securing early releases of blockchain technology underpinning the coin concept that comply with regulatory demands.
“As today’s settlement and clearing is a process involving many institutions, it’s vital that we collaborate with our peers to develop viable alternatives to current models, creating new digital capabilities for the financial services industry,” added Paul Maley, managing director, institutional client group, Deutsche Bank.
BNY’s participation comes following the news earlier this week that UBS’s leading blockchain researcher Alex Baitlin will be taking up a role at the custodian bank.