Group of banking giants to invest $50 Million for building a Blockchain Project.

Following recent news that JPMorgan, a global investment banking giant revealed its own cryptocurrency, dubbed JPM Coin, to settle some of its transactions between clients of its wholesale payments business in real time comes more from the banking sector. About $50 million investment to build a blockchain-based digital cash settlement system is the reported news of some of the world’s biggest banks. A report on Friday by Reuters, with some reference to their sources, indicated the possibility of a dozen unnamed banks involved in the project. The report further stated that the banks in the loop are expected to announce a launch next year, of their prospective entity called Fnality for the project.

Swiss banking giant UBS was said to be working on a cryptocurrency that would be “linked to real-world currencies and connected to central bank accounts” along with blockchain startup Clearmatics far back in 2015. Reportedly, Clearmatics may have filed a trademark application for the word “Fnality,” according to information from trademark service Justia Trademarks. This corroborates the level of truth to the headlines.

Following suit of UBS and Clearmatics on the “utility settlement coin” (USC) project, four other banks – BNY Mellon, ICAP, Deutsche Bank and Santander – came on board the project in 2016. This was revealed by Clearmatics founder Robert Sams in an interview. Sams  also described USC is as a form of digital cash that is “fully backed by cash assets at the central bank.”

Included in the Reuters report was the statement of a Barclays spokeswoman:

“We are a member of the USC Project and can confirm that the Research & Development phase is coming to an end.”

Bank of New York Mellon Corp, State Street Corp, Credit Suisse Group, Barclays, HSBC Holdings and Deutsche Bank were mentioned to be working on the USC project as well.

Joint information gathered has gone beyond just speculation as the world awaits the official confirmation and a further step into the blockchain space by financial institutions. This could possibly reduce any form of resentments the world financial sector has against the Blockchain-cryptocurrency existence.

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Credits- Yogita Khatri

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