Financial services giants Citi, JPMorgan, Mastercard, Swift and Deloitte are joining forces to investigate the potential of using shared ledger technology in the US financial system. The group is considering simulating multi-asset transactions in U.S. dollars as part of their research project called the Regulated Settlement Network (RSN) proof-of-concept (PoC). The goal of this project is to bring commercial bank money, wholesale central bank money, and securities like U.S. Treasuries and investment-grade debt to a common regulated venue.
Debopama Sen, global head of payments at Citi Services, expressed excitement about the opportunities this project presents for Citi in the digital economy. However, participants in the program are not required to commit to any future phases of research after the initial phase is completed.
The collaboration between these companies is focused on reaching a consensus on the use of shared ledger technology within the US financial system. The findings from this research will be published once the project is concluded. Raj Dhamodharan, executive vice president for blockchain and digital assets at Mastercard, believes that utilizing shared ledger technology for dollar settlements could lead to a new generation of market infrastructures with 24/7 programmable settlements that are frictionless.
The Securities Industry and Financial Markets Association (SIFMA) will be managing this program, which includes participation from other companies such as TD Bank N.A., U.S. Bank, USDF, Wells Fargo and Visa among others. This research project aims to explore the potential benefits and challenges of using shared ledger technology in the financial industry.
Overall, this collaboration between major financial services companies has significant implications for the future of finance as we know it today.
In conclusion, this joint effort by these leading players in the financial services industry represents a major step towards exploring new ways to leverage technology to improve efficiency and reduce costs within our financial systems. As they continue their research into shared ledger technology’s potential applications within the US financial system, we can expect further developments that will shape how we conduct business in this sector for years to come.
This article explores how five major companies in the financial services industry have come together to investigate using shared ledger technology within their operations with an emphasis on simulating multi-asset transactions in U
