UBS’ digital cash initiative given boost with six additional banks signing on
Initially launched as an idea in September 2015, UBS’ digital cash system has received a boost with six major banks joining the initiative.
According to Reuters, Credit Suisse, Barclays, Canadian Imperial Bank of Commerce, HSBC, State Street and MUFG have all joined UBS’ Utility Settlement Coin (USC).
Expected to launch later this year the system enables financial institutions to send payments and quickly settle transactions through blockchain technology. The coin is designed to act as an equivalent to the major currencies that receive the support of central banks, meaning that spending the USC will be the same as spending the currency it will be paired with.
The idea was initially launched in September 2015 with Clearmatics, a blockchain firm based in London. The project was taken on by Deutsche Bank, BNY Mellon, Santander and ICAP.
The technology will enable quicker processing of payments while also being easier for authorities to audit. The USC’s technology also does not demand manual processing, third party authentication or verification, and its incorporation of algorithms makes the processing automated.
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