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Blockchain Payment System Backed By Global Banks Joined By Settlement Firm Euroclear


21/03/2022


Blockchain Payment System Backed By Global Banks Joined By Settlement Firm Euroclear
Securities settlement company Euroclear announced on Monday that it would be partnering with a group of banks to create a new payment system for tokenized assets, in what is being seen as the latest sign of well-established and traditional companies and institutions are choosing to partner with startups and new entrants in the crypto technology sector.
 
Euroclear, based in Belgium, has bought a tiny interest in the three-year-old cooperation Fnality. The Fnality consortium is presently delving deeper into the field of distributed ledger technology (DLT), also known as blockchain, which is the technology that underpins crypto assets such as bitcoin.
 
Euroclear joined the collaboration to be able to settle all tokenized assets, or digital securities, against digital cash on DLT in a faster and more efficient manner, according to the company. The company's primary business activity is to settle stock and bond trades, which is the final phase of a transaction in which legal ownership of an item is established by exchanging cash for the asset.
 
More than a dozen worldwide institutions have teamed up to form Fnality, and the banks are assisting the organisation with its search. The addition of Euroclear to the partnership would allow Fnality to expand its presence in market infrastructure, the foundation of financial systems, as well as help the group speed its ambition to begin testing and implementing the system this year, according to Fnality.
 
"This has obvious positive implications for the execution of our business," Fnality Chief Executive Rhomaios Ram said in a statement.
 
Fnality recommends that digital representations of currencies be used to replace some of the time-consuming processes and paperwork involved in transferring money between banks.
 
The Bank of England approved a new form of account last year in order to support a wider range of anticipated payment systems, including blockchain-based ones.
 
Fnality has applied to the Bank of England to become an account operator, and its pound sterling payment system is expected to go live in October.
 
Euroclear is owned by a group of banks and exchanges, including Euronext and the London Stock Exchange Group, and last year it cleared assets worth 992 trillion euros ($1,095 trillion).
 
Banco Santander, BNY Mellon, Barclays, CIBC, Commerzbank, Credit Suisse, ING, KBC Group, Lloyds Banking Group, Mizuho Bank, MUFG Bank, Nasdaq, State Street Corporation, Sumitomo Mitsui Banking Corporation, and UBS are among Fnality's initial stockholders.
 
(Source:www.usnews.com)