Leading banks have plans to invest about $50 million in digital cash settlement project according to a report by Reuters on May 16th 2019.
Reuters reported that some sources familiar with the plans said some unspecified number of banks are involved in the project. The participating banks will be setting up a new entity called Fnality for the project, which could launch next year.
A document from trademark service, Justia Trademarks shows that Clearmatics have filed a trademark application for the word “Fnality,”
In 2015, one of the largest bank in Swiss UBS was said to be working on a cryptocurrency that would be “linked to real-world currencies and connected to central bank accounts” along with blockchain startup Clearmatics.
Later in 2016, four other banks – BNY Mellon, ICAP, Deutsche Bank and Santander – are said to have joined UBS and Clearmatics on the “utility settlement coin” (USC) project. In a report by CoinDesk, Clearmatics founder Robert Sams said that USC is as a form of digital cash that is “fully backed by cash assets at the central bank.”
In the Reuters report, Bank of New York Mellon Corp, State Street Corp, Credit Suisse Group, Barclays, HSBC Holdings and Deutsche Bank have also been working on the USC project.
A Barclays spokeswoman told Reuters:
“We are a member of the USC Project and can confirm that the Research & Development phase is coming to an end.”
The news was revealed after investment banking giant JPMorgan revealed its own cryptocurrency, dubbed JPM Coin, to settle some of its transactions between clients of its wholesale payments business in real time.