Major Financial Institutions Join UBS' “Utility Settlement Coin”

While hardcore Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term promoters still believe the decentralized cryptocurrency will soon overtake the established financial system, it seems more and more that the heart of Bitcoin's innovation - Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term technology - will be claimed by Wall Street as its own for improving performance and replacing real cash.

For example, it is now known that UBS' blockchain-based “Utility Settlement Coin” has won the backing of BNY Mellon, Deutsche Bank, ICAP and Santander, making it more likely to be a shared common protocol agreed upon and adopted by a major share of the banking industry.

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As we reported back in September 2015 the banks' cryptocurrency or token could be linked to established national fiat currencies (EUR,GBP, USD, YEN...) and connected to central bank accounts via a shared blockchain. The Swiss global financial giant is collaborating on the project with blockchain technology startup Clearmatics.

"Digital cash is a core component of a future financial market fabric based on blockchain technologies," commented Hyder Jaffery, head of UBS strategic investment and fintech innovation. "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."

Julio Faura, head of R&D at Santander, added: "Recent discussion of digital currencies by central banks and regulators has confirmed their potential significance. The Utility Settlement Coin is an essential step towards a future financial market on distributed ledger technologies."

"Cash is a leg to almost every trade, so this project is key to unlocking the benefits that the industry can gain from distributed automation technology in clearing, settlement and collateral management.” said, Robert Sams, Founder and CEO of Clearmatics Technologies LTD.

"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.

“The USC initiative provides an exciting opportunity to work closely with other industry thought leaders and the regulatory community to explore the possibilities of this technology.” said Saket Sharma, Head of Treasury Services Technology at BNY Mellon.