Report: Top Banks Alleged to Be Investing $50 Million in Digital Cash Settlement Project

Sources ostensibly familiar with the matter have claimed that some of the world’s leading banks are currently investing around $50 million to build a blockchain-powered digital cash system for transaction settlement. The news was reported by Reuters on May 17.

An earlier project for a blockchain-based currency settlement coin was unveiled by Swiss bank UBS Group AG and London-based technology startup Clearmatics at early as 2015, as Cointelegraph reported at the time.

One of Reuters’ sources has said that the latest development involves around a dozen major banks investing in a new entity dubbed Finality, which could launch as early as 2020 — although the deal has purportedly not yet been finalized, so details could still change.

While the banks involved in the latest $50 million investment round have not been disclosed, Reuters notes that institutions involved previously in the UBS project included UBS, Banco Santander, Bank of New York Mellon Corp, State Street Corp, Credit Suisse Group AG, Barclays PLC, HSBC Holdings Plc and Deutsche Bank AG.

In a statement to Reuters, a Barclays spokesperson reportedly refrained from commenting on the alleged deal, but noted that:

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

Other representatives from other banks reportedly did not provide Reuters with a comment.

As Cointelegraph has reported, United States banking giant JPMorgan Chase (JPM) has this year unveiled plans to launch its own blockchain-powered coin focused on increasing settlement efficiency, dubbed “JPM Coin.”