How Major Banks Are Advancing with Distributed Ledger Technology

Mastercard, Citi, JPMorgan, and Visa collaborate on the Regulated Settlement Network to revolutionize financial settlements through distributed ledger technology.
How Major Banks Are Advancing with Distributed Ledger Technology
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In a groundbreaking move, global financial giants including Mastercard, Visa, JPMorgan, and Citigroup are spearheading the integration of distributed ledger technology (DLT) with traditional banking through the creation of the Regulated Settlement Network (RSN). This innovative platform aims to merge commercial bank money with wholesale central bank funds alongside various securities like US Treasuries and investment-grade debt, paving the way for more efficient and secure financial transactions.

The initiative, endorsed by the New York Innovation Center of the Federal Reserve Bank of New York, reflects a significant shift towards a more interconnected financial ecosystem. By enabling settlements in US dollars, the RSN seeks to demonstrate the viability of a more fluid financial infrastructure, potentially reducing risks associated with errors and fraud.

With the support of key financial players such as Swift and Deloitte, and advisory by the Securities Industry and Financial Markets Association (SIFMA), the project extends beyond a typical collaboration. These partnerships underline a robust effort to enhance the adoption of DLT across the US financial system, showcasing a blend of innovation and regulatory oversight.

As the world watches this exploratory phase, the implications for future commercial deployment are immense, signaling a potential revolution in how financial markets operate. The commitment by these corporations to DLT could herald a new era of digital finance, merging traditional banking with the flexibility and efficiency of modern technology.

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Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.

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