Banks Embrace Coin: Utility Settlement Coin (USC)
An 11-bank strong consortium is in the advanced stages of creating a blockchain-based market infrastructure for a multi-currency distributed payments system, focused purely on the cash leg of settlement. With its tokens 100% collateralized with central bank funds, project members say these will have credit risk properties of central bank money. This is an intriguing project for many reasons, including that it talks more about market structure implications than the core technical architecture. This is not another blockchain “solution looking for a problem”. The press has focused on the “coin” part, but the consortium members are very focused on USC’s “utility”– as well as making their project a reality for next year.
TABB Group’s latest market note, “Banks Embrace Coin: Utility Settlement Coin (USC)” outlines the Project’s consortium utility model, technology platform, plans and market structure implications.
- FinTech