LONDON (Alliance News) - Swiss bank UBS AG on Wednesday announced it has partnered with three other banks and interdealer broker ICAP PLC on the development of the Utility Settlement Coin digital currency concept.
UBS will work with ICAP, Germany's Deutsche Bank AG, The Bank of New York Mellon Corp and Banco Santander SA on the project, in addition to UBS's initial partner on the digital currency, London-based clearing technology firm Clearmatics.
The news had been flagged in a report late Tuesday by the Financial Times.
The focus of the work by the group will be on financial structuring of the USC in addition to wider market structure implications. UBS envisages USC becoming the industry standard digital currency for clearing financial trades. It is based on blockchain, the technology which underpins the Bitcoin digital currency.
UBS said the group will continue to engage in active dialogue with central banks and regulators to ensure the product is compliant with regulations.
"Digital cash is a core component of a future financial market fabric based on blockchain technologies. 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," said UBS's Hyder Jaffrey, its head of strategic investment and FinTech innovation within its investment banking arm.
Shares in ICAP were up 0.2% to 477.20 pence.
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