US Banks Embark on Blockchain Experiments | Financing and investment

“Building on the results of a previous industry (initiative), this project will further explore the settlement of cash and tokenized securities on a common system,” the Securities Industry and Financial Markets Association (SIFMA) said in a press release.

SIFMA manages the project with participation from several major financial institutions, including Citi, JP Morgan, Mastercard, Swift, TD Bank, US Bank, USDF, Wells Fargo, Visa and Zions Bancorp.

Other contributors to the project include Bank of New York Mellon, Broadridge, DTCC, International Swaps and Derivatives Association, Tassat Group and MITRE.

The Federal Reserve Bank of New York will be a technical observer “to learn about the use of shared ledger technology as an infrastructure to make transfers between regulated financial institutions, including the settlement of central bank currency of large tokenized commercial bank money and US Treasury securities,” specifies SIFMA.

“This exploration of shared ledger technology is an important initiative to explore innovations that work with digital forms of cash and US dollar securities as market participants continue to innovate to support efficient capital markets and resilient,” emphasizes Charles de Simone, Director General of SIFMA.

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