Blockchain Settlement System To Be Built By Top Banks In A $50m Investment

In the latest cryptocurrency news, we have a report shared by Reuters which says that some of the world’s biggest banks are investing $50 million to build a blockchain settlement system. The digital cash system will include top bank executives and individuals that understand the blockchain technology in detail.

The previously disclosed project, known as the “utility settlement coin,” was first proposed by Swiss bank UBS Group AG and London-based technology startup Clearmatics in 2015. It aims to develop a system to make clearing and settlement in financial markets more efficient,” is how Reuters described the blockchain settlement system.

Citing “people familiar with the plans,” the publication founds that there are around a dozen unspecified banks involved in this project. Even though this is only a rumor which was shared by many best cryptocurrency news sites, the banks are reportedly preparing on setting up a new entity called Fnality for the project which is expected to launch next year.

However, the deal has not been finalized so details may change, says the report. The general expectancy is that the blockchain settlement system could launch in 2020, according to the cited people.

Right now, it is still unclear which banks are participating in the investment round for this blockchain system. From what we have reported in our coming altcoin news before this, top banks which are ‘secretly’ working on blockchain projects include the names of UBS, Banco Santander, Bank of New York Mellon Corp, State Street Corp, Credit Suisse Group AG, Barclays PLC, HSBC Holdings Plc and Deutsche Bank AG.

A spokesperson from Barclays was asked to comment on the development of this blockchain settlement system (and their possible involvement). “We are a member of the USC Project and can confirm that the Research & Development phase is coming to an end,” she said in a written statement, refusing to comment on the deal.

Reuters also asked other representatives from major banks to comment on this blockchain settlement system – but did not receive further comments. What’s interesting is that the news comes right after the investment banking giant JPMorgan revealed its own cryptocurrency named JPM Coin – a post that echoed in the altcoin news –  all in order to settle some of the transactions between clients of its wholesale business in real time.