Leading banks and credit card giants are reportedly now participating in a tokenized deposits pilot project launched by industry body UK Finance.
According to a new report by Bloomberg, companies that include Barclays, Citigroup, Mastercard and Visa are teaming up for the effort.
The project aims to create a commercial banking system for tokenized deposits and securities to make transactions across borders and systems easier and faster as well as reduce errors and fraud.
The UK Finance pilot, called the “Regulated Liability Network,” is designed as a shared ledger with the capability to track banking payments. Network participants can record, transfer and settle transactions across central bank money, commercial bank money and electronic money.
Says Gilbert Verdian, the CEO of Quant, which is providing blockchain technology for the pilot,
“Banks see the need for programmable payments today. It’s quite a game changer for them because business models can operate in a more efficient way because they are not limited by the shackles of the current payment system.”
According to Bloomberg, the results of the pilot will be published in August.
Additional participants are being invited to join in on the pilot in July, including yet-to-be-named fintech startups and technology companies to test products related to tokenized commercial bank money.
The project also envisions the platform being used by asset managers to tokenize their funds and for the settlement of mortgages using programmable funds.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
