Today the New York Innovation Center (NYIC), a NY Federal Reserve initiative, announced a tokenized money or digital dollar project involving nine financial institutions. It will use the Regulated Liability Network (RLN), which Citi first conceived, to use the same DLT network to support central bank liabilities, commercial bank money and non-bank issuer liabilities. Citi, BNY Mellon, Wells Fargo, HSBC and Mastercard are among the participants.
Update: Results of the trial have been released.
Many that are interested in digital currency will be aware of JP Morgan’s JPM Coin. While this is tokenized money, it only works for clients with JP Morgan bank accounts. If you had a separate Citi Coin and a Wells Fargo Coin, there’s a good chance they’d use different technologies. If you want to use distributed ledger technology for interbank payments, you will end up with an interoperability challenge.
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