Multiple institutions including Citigroup and JPMorgan Chase to explore Distributed Ledger Technology through multi-asset trading simulation

Multiple institutions including Citigroup and JPMorgan Chase to explore Distributed Ledger Technology through multi-asset trading simulation

Multiple institutions including Citigroup and JPMorgan Chase to explore Distributed Ledger Technology through multi-asset trading simulation

According to CoinDesk, several financial institutions including Citibank, JPMorgan, Mastercard, the Society for Worldwide Interbank Financial Telecommunication (SWIFT), and Deloitte are collaborating to explore the use of distributed ledger technology through simulated multi-asset transactions denominated in US dollars.

The project, called the Regulated Securities Network (RSN) Proof of Concept (PoC), will explore the potential of introducing commercial bank currencies, wholesale central bank currencies, and securities such as US Treasury bonds and investment-grade bonds into a common regulated venue. The Securities Industry and Financial Markets Association (SIFMA) is responsible for managing this project, as stated in a press release.

Debopama Sen, Head of Global Payments at Citi, stated in the press release that a key element of tokenization theory is the potential to establish a more universal venue for financial transaction settlements, as “the financial market infrastructure in today’s digital economy may need to settle a large volume of digital assets within a defined legal framework.”

Raj Dhamodharan, Vice President of Blockchain and Digital Assets at Mastercard, stated that this project’s other participating institutions include TD Bank N.A., U.S. Bank, USDF, Wells Fargo, Visa, and Zions Bancorp. The Federal Reserve Bank of New York’s Innovation Center will serve as a technical observer. The press release stated that participating organizations have not committed to conducting any future research stages after the first phase is completed. The focus of this collaboration is to achieve further consensus on the application of shared ledger technology in the U.S. financial system. The research findings will be disclosed after the project concludes.