A few of the world's largest banks are investing nearly $50 million to develop a blockchain-based digital cash system that aims to settle financial transactions, sources close with the plans confirmed to Reuters.
The project, known as the "utility settlement coin," aims to clear and settle financial transactions more efficiently. The settlement count would be the digital cash equivalent of central bank-backed currencies like the dollar or euro, sources confirmed.
The digital coin would be convertible at parity and spending the coin would be similar to spending the fiat currency it is paired with.
This is among the most ambitious blockchain projects to surface, according to Reuters. While plans are still in development stages, the blockchain system could launch in 2020.
While it is unclear which banks are participating, Swiss bank UBS Group AG and London-based technology startup Clearmatics first proposed the idea in 2015.
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