Major banks, ICAP join up to create digital currency Aug 24, 2016 6:17:52 GMT -6
Post by jeffolie on Aug 24, 2016 6:17:52 GMT -6
Major banks, ICAP join up to create digital currency
Aug 24 2016, 04:36 ET | By: Yigal Grayeff, SA News Editor
UBS (NYSE:UBS), Deutsche Bank (NYSE:DB), Santander (NYSE:SAN), BNY Mellon (NYSE:BK) and broker ICAP (OTCPK:IAPLF) have teamed up to create a digital currency called the "utility settlement coin.
The firms hope that the currency will become an industry standard used to clear and settle financial trades over blockchain, the technology that bitcoin is based on.
The banks and ICAP are pitching the idea to central banks and hope to launch the utility settlement coin in early 2018.
The project is competing with similar initiatives from the likes of Citibank, Goldman Sachs and JPMorgan, which are developing separate digital currencies.
"Today trading between banks and institutions is difficult, time-consuming and costly, which is why we all have big back offices," says Julio Faura, head of R&D and innovation at Santander. "This is about streamlining it and making it more efficient.